Question

Brig Company had $842,000 in sales, sales discounts of $12,630, sales returns and allowances of $18,945, cost of goods sold of $399,950, and $289,650 in operating expenses. What is the net income of Brig's company?

Answer 1

$120,825

Step-by-step explanation:

To calculate the net income of Brig Company, you can use the following formula:

Net Income = (Total Sales - Sales Discounts - Sales Returns and Allowances) - (Cost of Goods Sold + Operating Expenses)

Plug in the given values:

Net Income = ($842,000 - $12,630 - $18,945) - ($399,950 + $289,650)

Now, calculate each part of the formula:

Net Income = ($810,425) - ($689,600)

Now, subtract the expenses from the revenue:

Net Income = $810,425 - $689,600

Net Income = $120,825

The net income of Brig Company is $120,825.