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In Year 1, Aliyah's Boutique (a retail clothing company) sold 10,010 units of its product at an average price of $27 per unit. The
In Year 1, Aliyah's Boutique (a retail clothing company) sold 10,010 units of its product at an average price of $27 per unit. The company reported estimated returns and allowances in Year 1 of 2.0 percent of gross revenue. Aliyah's Boutique actually purchased 10,930 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 38,320 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 $38,320, depreciation expense was $18,180, and interest expense was $8,290. Finally, Aliyah's Boutique's tax rate was 30 percent and Aliyah's Boutique paid of dividend of $4,600 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.
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