Newark Company has provided the following information:
Posted: Tue Aug 03, 2021 6:49 am
Newark Company has provided the following information:
• Cash sales, $450,000
• Credit sales, $1,350,000
• Selling and administrative expenses, $330,000
• Sales returns and allowances, $90,000
• Gross profit, $1,360,000
• Increase in accounts receivable, $55,000
• Bad debt expense, $33,000
• Sales discounts, $43,000
• Net income, $1,030,000
How much are Newark's net sales?
A. $1,634,000.
B. $1,800,000.
C. $1,667,000.
D. $1,745,000.
C. $1667000
Net sales, $1,667,000 = $450,000 + $1,350,000 - $90,000 - $43,000.
• Cash sales, $450,000
• Credit sales, $1,350,000
• Selling and administrative expenses, $330,000
• Sales returns and allowances, $90,000
• Gross profit, $1,360,000
• Increase in accounts receivable, $55,000
• Bad debt expense, $33,000
• Sales discounts, $43,000
• Net income, $1,030,000
How much are Newark's net sales?
A. $1,634,000.
B. $1,800,000.
C. $1,667,000.
D. $1,745,000.
C. $1667000
Net sales, $1,667,000 = $450,000 + $1,350,000 - $90,000 - $43,000.