Final answer:
The question involves calculating financial figures such as net sales and net income for Newark Company using given financial data. Net sales are determined by adjusting sales figures for returns, allowances, and discounts, while net income is calculated by subtracting explicit costs from gross profit.
Step-by-step explanation:
The question provided pertains to calculating various components of financial statements for Newark Company using the given information. To define accounting profit, we subtract explicit costs from total revenues. In the case presented, we do not have the total revenue straightforwardly stated, but we can infer other required amounts such as net sales, and total expenses to reach the net income or the bottom-line profit.
Calculating Net Sales
Net sales would be calculated by summing cash and credit sales and subtracting sales returns, allowances, and sales discounts:
- Cash sales: $540,000
- Credit sales: $1,440,000
- Subtotal: $1,980,000
- Sales returns and allowances: -$99,000
- Sales discounts: -$52,000
- Net sales: $1,829,000
Calculating Net Income
To calculate net income, we need to subtract the operating expenses, bad debt expense, and any other expenses from the gross profit:
- Gross profit: $1,450,000
- Selling and administrative expenses: -$420,000
- Bad debt expense: -$42,000
- Net income: $1,030,000
Note that the student provided net income in the original set of data; we're confirming that our calculations should, theoretically, align.