Cushman Company had $800,000 in sales,sales discounts of $12,000,sales returns and allowances of $18,000,cost of goods sold of $380,000,and $275,000 in operating expenses.Net income equals:
A)$770,000.
B)$402,000.
C)$390,000.
D)$115,000.
E)$408,000.

Question

Quizplus · Accepted Answer

Net income is calculated as: Sales - Sales Discounts - Sales Returns and Allowances - Cost of Goods Sold - Operating Expenses. So, $800,000 - $12,000 - $18,000 - $380,000 - $275,000 = $115,000.

Cushman Company Had $800,000 in Sales,sales Discounts of $12,000,sales Returns