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Newark Company has provided the following information:
Cash sales, $540,000
Credit sales, $1,440,000
Selling and administrative expenses, $420,000
Sales returns and allowances, $99,000
Gross profit, $1,450,000
Increase in accounts receivable, $64,000
Bad debt expense, $42,000
Sales discounts, $52,000
Net income, $1,030,000

How much are Newark's net sales?

Respuesta :

Answer:

$1829000.

Explanation:

Given: Cash sales, $540,000.

           Credit sales, $1,440,000.

           Sales returns and allowances, $99,000.

           Sales discounts, $52,000

Now, computing net sales of Newark.

Net sales= [tex]Cash\ sales+ Credit\ sales- Sales\ discount- Sales\ return[/tex]

Net sales= [tex]540000+ 1440000- 99000-52000[/tex]

⇒ Net sales= [tex]1980000- 151000[/tex]

∴ Net sales= [tex]\$ 1829000[/tex]

Hence, Newark´s net sales is $1829000.

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