At year-end, Xenon Manufacturers had Sales Revenue of $987,000. Its Cost of Goods Sold was 30% of Sales Revenue. Operating expenses for the year included $205,000 of Selling Expenses and $56,000 of General and Administrative Expenses. The balance in the Prepaid Expenses was $22,000 at the end of the year. What was the net income for Xenon Manufacturers at the end of the year?

Question

Quizplus · Accepted Answer

Net Income = Sales Revenue - Cost of Goods Sold - Selling Expenses - General and Administrative Expenses = $987,000 - ($987,000 x 30%) - $205,000 - $56,000 = $429,900.

At Year-End, Xenon Manufacturers Had Sales Revenue of $987,000