Question 1 Part A and B

A. The following is a partial year-end adjusted trial balance.

Account Title	Debits	Credits
Sales revenue		420,000
Loss on sale of investments	46,000
Interest revenue		4,500
Cost of goods sold	220,000
General and administrative expenses	52,000
Restructuring costs	62,000
Selling expenses	31,000
Income tax expense	0

Income tax expense has not yet been recorded. The income tax rate is 40%. a. Determine the operating income (loss). b. Determine the income (loss) before income taxes. c. Determine the net income (loss).

B. During 2018, Rogue Corporation reported sales revenue of $770,000. Inventory at both the beginning and end of the year totaled $80,000. The inventory turnover ratio for the year was 6.6. What amount of gross profit did the company report in its 2018 income statement?