Answer to Question #295893 in Financial Math for lollz

Question

Compute the Net Income, Given; 

Cost of Goods Sold = $37,000, SGA Costs = $25,000, Sales Revenues=$99,000, 

End WIP=$10,000, End Raw Materials = $11,000.

Answer 1

Net income will be:

Sales Revenue - Cost of Goods Sold + End Raw Materials = Gross Margin

Gross Margin - SGA costs = Net Income

Sales Revenue - Cost of Goods Sold + End Raw Material - SGA costs = Net Income.

$99,000 - ($37,000 + $11,000) - $25,000 =$26,000

Net income = $26,000