Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In Year 1, Aliyah's Boutique (a retail clothing company) sold 10,120 units of its product at an average price of $30 per unit. The company

image text in transcribed
In Year 1, Aliyah's Boutique (a retail clothing company) sold 10,120 units of its product at an average price of $30 per unit. The company reported estimated returns and allowances in Year 1 of 2.0 percent of gross revenue. Aliyah's Boutique actually purchased 9,720 units of its product from its manufacturer in Year 1 at an average cost of $13 per unit. Aliyah's Boutique began Year 1 with 40,240 units of its product in inventory (carried at an average cost of $13 per unit). Operating expenses (excluding depreciation) for Aliyah's Boutique in Year 1 were $40,240, depreciation expense was $17,830, and interest expense was $8,820. Finally, Aliyah's Boutique's tax rate was 30 percent and Aliyah's Boutique paid of dividend of $2,900 at the end of Year 1. Aliyah's Boutique fiscal year runs from September 1 through August 31. Given this information, compute net income for Aliyah's Boutique for Year 1. Record your answer as a dollar amount rounded to 0 decimal places; do not include a dollar sign or any commas in your answer. For example, record $23,456.8905 as 23457

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Working Capital Management

Authors: James Sagner

1st Edition

047087998X,0470916923

More Books

Students also viewed these Finance questions

Question

Who will act on what I write?

Answered: 1 week ago