Alpha Company provided the following data concerning its income statement: sales, $890,000;...
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Alpha Company provided the following data concerning its income statement: sales, {eq}\$890,000 {/eq}; purchases, {eq}\$479,000 {/eq}; beginning inventory, {eq}\$265,000 {/eq}; ending inventory, {eq}\$267,000 {/eq}; operating expenses, {eq}\$117,000 {/eq}; freight-in, {eq}\$5,000 {/eq}; sales discounts, {eq}\$27,000 {/eq}; purchases discounts, {eq}\$15,000 {/eq}; sales returns & allowances, {eq}\$95,000 {/eq}; and purchases returns & allowances, {eq}\$44,000 {/eq}. The data are complete and provide the basis for the preparation of an income statement. How much is net income?
Net Income:
A company's net income is the result at the bottom of its income statement that is carried over to the statement of changes in stockholders' equity and finally to the balance sheet as part of Retained Earnings. It is also used to calculate the earnings per share.
Answer and Explanation: 1
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What Is Net Income? - Definition & Formula
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