4. Rolling Stone, Inc. is a merchandiser of stone ornaments. The company sold 8,000 units during the year. They provided the following information: Sales Revenue $593,000 Purchases (excluding Freight In) 304,000 Selling and Administrative Expenses 68,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 42,000 What is Rolling Stones operating income for the year? (round) Show your calculations. A) $203,000 B) $322,000 C) $271,000 D) $525,000

5. No More Flats, Inc. is a large manufacturer of auto tires. They provided the following information: Sales Revenue $75,000 Beginning Finished Goods Inventory 28,000 Cost of Goods Sold 36,500 Cost of Goods Manufactured 43,000 Calculate the ending Finished Goods Inventory reported on No More Flats balance sheet. Show your calculations. A) $32,000 B) $71,000 C) $34,500 D) $6,500