Financial Information Is Presented Below The Amount of Net Sales on the Income Statement Would

question 232

Multiple Choice

Financial information is presented below: $$\begin{array} { l r } \text { Operating expenses } & \$ 45,000 \\\text { Sales returns and allowances } & 4,000 \\\text { Sales discounts } & 6,000 \\\text { Sales revenue } & 160,000 \\\text { Cost of goods sold } & 90,000\end{array}$$ The amount of net sales on the income statement would be

• A) $154,000.
• B) $150,000.
• C) $160,000.
• D) $156,000.

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Definitions:

Capital Expenditures

Expenditures that increase the company’s investment in productive facilities.

Cash Receipts

The collection of cash, typically from customers as revenue or from other sources, recorded by a business.

Credit Sales

Sales made on credit, where the payment is received after the goods or services are delivered.

Budgeted Balance Sheet

A financial statement that projects the balances of assets, liabilities, and equity based on expected future transactions.