Question

Company had $830,000 in sales, sales discounts of $12,450, sales returns and allowances of $18,675, cost of goods sold of $390,250, and $285,520 in operating expenses. Net income equals:

Answer 1

The net income for the company is calculated by subtracting the sales discounts, sales returns and allowances from the total sales to get the net sales, then further subtracting the cost of goods sold and operating expenses, resulting in a net income of $123,105.

Step-by-step explanation:

To calculate the net income of a company, you start by determining the net sales. This is done by subtracting sales discounts and sales returns and allowances from the total sales. After finding the net sales, you subtract the cost of goods sold (COGS) and operating expenses to find the net income.

The calculation step-by-step would be:

• Total Sales: $830,000
• Less: Sales Discounts: $12,450
• Less: Sales Returns and Allowances: $18,675
• Equals: Net Sales
• Less: Cost of Goods Sold: $390,250
• Less: Operating Expenses: $285,520
• Equals: Net Income

Let's do the math:

• Net Sales = $830,000 - $12,450 - $18,675 = $798,875
• Net Income = $798,875 - $390,250 - $285,520 = $123,105

So, the net income for the company is $123,105.

Answer 2

Answer: $123,105

Step-by-step explanation:

Sales $830,000

Less: Sales Discounts $12,450

Sales returns $18,675 ($31,125)

Net Sales $798,875

Less: Cost of Goods sold ($390,250)

Gross Profit $408,625

Less: Operating expenses ($285,520)

Net income $123,105