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    bcstokes's Avatar
    bcstokes Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 21, 2011, 04:32 AM
    Financial Information is presented below:
    Operating Expenses $45,000
    Sales Returns and Allowances 13,000
    Sales Discount 6,000
    Sales 160,000
    COGS 77,000

    The amount of net sales on the income statement would be

    A) $128,000
    B) $125,000
    C) $140,000
    D) $137,000

    The problem I run into, is that given this data, I compute a net sales of $141,000. Anomaly, much?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Feb 21, 2011, 07:00 AM

    Net Sales = Sales - Sales Discounts - Sales Returns & Allowances. Your answer is correct given the information above. You could have a typo with an amount somewhere, if the possible answers are as listed.
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