Sales revenue equals $367,810, sales returns and allowances are $10,000, and sales discounts total $14,180. The cost of goods sold is $216,490, operating expenses are $28,500, and the company incurs $31,640 of income tax expense. Which of the following statements is correct?

Net Sales = $343,630

Gross Profit = $127,140

Net Income = $67,000

Explanation:

XYZ Company

Income Statement

For the year ended, Dec 31, 20xx

Particulars $

Sales Revenue 367,810

Less: Sales returns and allowances (10,000)

Less: Sales discounts (14,180)

Net Sales 343,630

Less: Cost of goods sold (216,490)

Gross profit 127,140

Less: operating expenses (28,500)

Income from operation 98,640

Less: Income tax expense (31,640)

Net Income 67,000