What are the net sales from the following income statement? Income Statement Sales $12,900 Returns ($350) Net Sales COGS ($8,400) Gross Profit Overhead ($2,650) Net Income net sales = $ [?]
What are the net sales from the following income statement? Income Statement Sales $12,900 Returns ($350) Net Sales COGS ($8,400) Gross Profit Overhead ($2,650) Net Income net sales = $ [?]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Net sales from Following inform sttement
![### Understanding Net Sales from an Income Statement
#### Income Statement Breakdown:
- **Sales**: $12,900
- **Returns**: ($350)
#### Calculation of Net Sales:
To calculate the net sales, subtract the returns from the total sales.
\[ \text{Net Sales} = \text{Sales} - \text{Returns} \]
In this scenario:
\[ \text{Net Sales} = \$12,900 - \$350 \]
Hence, the Net Sales value is \( \$12,550 \).
#### Additional Financial Information:
- **COGS (Cost of Goods Sold)**: ($8,400)
- **Gross Profit**: To be determined by subtracting COGS from Net Sales
- **Overhead**: ($2,650)
- **Net Income**: The final profit after deducting all expenses
#### Graphical Explanation:
The image includes an arranged table layout representing an abbreviated income statement. Below the table, there is a field for inputting the calculated net sales value with a prompt to enter the answer.
This breakdown ensures a clear understanding of each component of the income statement and how to compute the net sales effectively.
**Note:** For a complete analysis, continue to compute Gross Profit and Net Income based on the given values.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11658c28-3fc0-49ae-ba8d-1acbaa45b86e%2F4a93afa2-6db2-4883-b9c8-f61cf7b5590e%2F88rid5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Understanding Net Sales from an Income Statement
#### Income Statement Breakdown:
- **Sales**: $12,900
- **Returns**: ($350)
#### Calculation of Net Sales:
To calculate the net sales, subtract the returns from the total sales.
\[ \text{Net Sales} = \text{Sales} - \text{Returns} \]
In this scenario:
\[ \text{Net Sales} = \$12,900 - \$350 \]
Hence, the Net Sales value is \( \$12,550 \).
#### Additional Financial Information:
- **COGS (Cost of Goods Sold)**: ($8,400)
- **Gross Profit**: To be determined by subtracting COGS from Net Sales
- **Overhead**: ($2,650)
- **Net Income**: The final profit after deducting all expenses
#### Graphical Explanation:
The image includes an arranged table layout representing an abbreviated income statement. Below the table, there is a field for inputting the calculated net sales value with a prompt to enter the answer.
This breakdown ensures a clear understanding of each component of the income statement and how to compute the net sales effectively.
**Note:** For a complete analysis, continue to compute Gross Profit and Net Income based on the given values.
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