Mountain View Manufacturing has gross sales of $45,000 for the year. Its cost for the goods sold is $25,000. Returns and allowances amounted to $3,000. They purchased new machinery normally selling for $15,000 at a 25% discount. Based on these facts, what is its gross income for the year?

Mountain View Manufacturing has gross sales of $45,000 for the year. Its cost for the goods sold is $25,000. Returns and allowances amounted to $3,000. They purchased new machinery normally selling for $15,000 at a 25% discount. Based on these facts, what is its gross income for the year?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Question

What is the gross income for the year on these financial accounting question?

Mountain View Manufacturing has gross sales
of $45,000 for the year. Its cost for the goods
sold is $25,000. Returns and allowances
amounted to $3,000. They purchased new
machinery normally selling for $15,000 at a
25% discount. Based on these facts, what is
its gross income for the year?

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