Question
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail engaged in the
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail engaged in the following transactions for 2018. Sales tax of 6 percent is collected on all sales.
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Book sales, not including sales tax, for 2018 amounted to $273,000 cash.
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Cash sales of miscellaneous items in 2018 were $151,000, not including tax.
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Cost of goods sold was $212,000 for the year.
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Paid $128,000 in operating expenses for the year.
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Paid the sales tax collected to the state agency.
Required
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What is the total amount of sales tax Vail Book Mart collected and paid for the year?
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What is the Vail Book Marts net income for the year?
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