Question

Cushman company, inc. 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:

Answer 1

115,000 is your answer all you have to do is take the sales and subtract the expenses 

Answer 2

Answer: The net income is $115,000.

Explanation: The net income is calculated by subtracting the expenses from the revenues. The net sales equals Sales less Sales Discounts and Sales Returns and Allowances. $800,000 - 12,000 - 18,000 = $770,000 = Net Sales

Net Sales - Cost of Good Sold - Operating Expenses = Net Income

$770,000 - 380,000 - 275,000 = $115,000

Net Income = $115,000