1.4) Georgio Company had net sales of $500,000, cost of goods sold of $200,000, operating expenses of $50,000, income tax expense of $5,000. Which of the following amounts will Georgio Company report as operating income on their income statement ?

a. $500,000

b. $245,000

c. $ 250,000

d. $300,000

1.13) Which of the following items would be included on the reconciliation of retained earnings?

a. Net income for the year of $500,000

b. Dividends declared of $ 50,000

c. Prior period adjustment to correct understatement of previous years ending inventory of $3,500

d. All of these would be included on the reconciliation of retained earnings

1.14) The following items involve the cash flow activities of Morrison Tree Corporation:

Net income $800,000

Decrease in accounts receivable $5,000

Increase of inventories $10,000

Amortization expense $ 15,000

Decrease in accounts payable $10,000

Which of the following amounts should Morrison Tree Corporation report as net cash provided by operating activities on their statement of cash flows?

a. $ 800,000

b. $ 805,000

c. $ 750,000

d. $775,000

1.15) Apple Inc. had the following balances on their adjusted trial balance on December 31, 2016:

Gross sales revenue: $500,000

Sales discounts: $25,000

Sales Returns: $25,000

What amount should Apple Co. report as net sales in their income statement for the year ended December 31, 2016?

a. 500,000

b. 525,000

c. 450,000

d . 475,000