Acme Company is a wholesaler that makes all inventory sales and inventory purchases on account. Here are data regarding the month of May:
May April 30 May 31
Cash collections from customers $250,000
Cash payments to suppliers of inventory $127,000
Accounts receivable balance $11,000 $14,000
Accounts payable balance $23,500 $21,000
Inventory balance $16,700 $16,700
Selling and administrative expenses are $40,000 for the month of May. What is Acme's operating income in May?
$82,500
$83,000
$83,500
$88,500
None of the above