Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional Information follows: • Return on total assets is 15% (average total assets is $70,000). • Inventory turnover is 6 (average Inventory is $6,850). ⚫ Accounts receivable turnover is 9 (average accounts receivable is $7,000). Net sales Income Statement Cost of goods sold Selling, general, and administrative expenses 8,200 Income tax expense 3,200 Net income
Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional Information follows: • Return on total assets is 15% (average total assets is $70,000). • Inventory turnover is 6 (average Inventory is $6,850). ⚫ Accounts receivable turnover is 9 (average accounts receivable is $7,000). Net sales Income Statement Cost of goods sold Selling, general, and administrative expenses 8,200 Income tax expense 3,200 Net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following is an incomplete current-year income statement.
Determine Net Sales, Cost of goods sold and Net Income. Additional Information follows:
• Return on total assets is 15% (average total assets is $70,000).
• Inventory turnover is 6 (average Inventory is $6,850).
• Accounts receivable turnover is 9 (average accounts receivable is $7,000).
Net sales
Cost of goods sold
Income Statement
Selling, general, and administrative expenses
8.200
Income tax expense
3,200
Net income
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