Luxury Tapestries had sales of $500,000 and returns and allowances of $50,000. Its cost of goods sold was $200,000 and it had operating expenses of $150,000. Calculate net income for the company.
A) $0
B) $350,000
C) $50,000
D) $100,000
E) $200,000

Question

Quizplus · Accepted Answer

Net income is calculated as Sales - Returns and Allowances - Cost of Goods Sold - Operating Expenses. So, $500,000 - $50,000 - $200,000 - $150,000 = $100,000.

Luxury Tapestries Had Sales of $500,000 and Returns and Allowances