Question

Cushman Company had $838,000 in sales, sales discounts of $12,570, sales returns and allowances of $18,855, cost of goods sold of $398,050, and $288,270 in operating expenses. Net income equals:

Answer 1

Answer:

Net income equals: $120,075.

Step-by-step explanation:

The net income is equal to:

+Sales

-Sales discounts

-Sales returns and allowances

-Cost of goods cold

-Operating expenses.

Computing all these values, we have:

Net income =Sales - (Sales discounts+Sales returns and allowances+Cost of goods cold+Operating expenses)

$NI=838,000-(12,570+18,855+398,050+288,270)\\\\NI=838,000-717,925\\\\NI=120,075$

The net income equals to $120,075.