Answer to Question #287665 in Accounting for Yoyo

Question

Assume the following data extracted from accounting records of XYZ Company, a merchandising firm

Gross Purchase Br. 400,000

Sales returns and allowance 5,000

Sales discount 1,000

Purchase returns and allowance 2,000

Purchase discount 500

Gross sales 800,000

Ending inventory 40,000

Beginning inventory 50,000

Transportation in 1500

Operating expenses 150,000

Non-operating Expenses 10,000

Income Tax 30%

Required: Compute Net income (net loss) for the period

Answer 1

Solution:

The net income for the period is as follows: