Question

Last month, Sunglass Kiosk had total sales of $9,720. Merchandise totaling $110 was returned. The goods that were sold cost Sunglass Kiosk $4,864. Operating expenses for the month were $1,180. What is the net income Sunglasss Kiosk will put on its income statement?

Answer 1

Given:
Total sales = 9,720
COGS = 4,864
returns = 110
Opex = 1180

(9720 - 4864)/4864 = 4,856/4864 = 0.9984
110 x 0.9984 = 109.82

Sales: 9,720 - 110 = 9,610
COGS: 4,864 - 109.82 = 4754.18

9,610 - 4754.18 - 1,180 = 3,675.82 net income.