Question
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vall engaged in
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vall engaged in the following transactions during the year. Sales tax of 6 percent is collected on all sales 1. Book sales, not including sales tax, for the year amounted to $272,000 cash. 2. Cash sales of miscellaneous items for the year were $151,000, not including tax 3. Cost of goods sold was $211,000 for the year 4. Paid $130,000 in operating expenses for the year. 5. Paid the sales tax collected to the state agency ces Required A a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. What is the Vail Book Mart's net income for the year? a Sales tax collected t b. Net income
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