In Year 1, Aliyah's Boutique (a retail clothing company) sold 10,190 units of its product at an average price of $26 per unit. The company reported estimated returns and allowances in Year 1 of 2.0 percent of gross revenue. Aliyah's Boutique actually purchased 10,790 units of its product from its manufacturer in Year 1 at an average cost of $14 per unit. Aliyah's Boutique began Year 1 with 44,000 units of its product in inventory (carried at an average cost of $14 per unit). Operating expenses (excluding depreciation) for Aliyah's Boutique in Year 1 were $44,000, depreciation expense was $19,410, and interest expense was $8,030. Finally, Aliyah's Boutique's tax rate was 30 percent and Aliyah's Boutique paid of dividend of $1,600 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. Record your answer as a dollar amount rounded to 0 decimal places; do not include a dollar sign or any commas in your answer. For example, record $23,456.8905 as 23457.
In Year 1, Aliyah's Boutique (a retail clothing company) sold 10,190 units of its product at an average price of $26 per unit. The company reported estimated returns and allowances in Year 1 of 2.0 percent of gross revenue. Aliyah's Boutique actually purchased 10,790 units of its product from its manufacturer in Year 1 at an average cost of $14 per unit. Aliyah's Boutique began Year 1 with 44,000 units of its product in inventory (carried at an average cost of $14 per unit). Operating expenses (excluding depreciation) for Aliyah's Boutique in Year 1 were $44,000, depreciation expense was $19,410, and interest expense was $8,030. Finally, Aliyah's Boutique's tax rate was 30 percent and Aliyah's Boutique paid of dividend of $1,600 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. Record your answer as a dollar amount rounded to 0 decimal places; do not include a dollar sign or any commas in your answer. For example, record $23,456.8905 as 23457.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:In Year 1, Aliyah's Boutique (a retail clothing company) sold 10,190 units of its
product at an average price of $26 per unit. The company reported estimated returns
and allowances in Year 1 of 2.0 percent of gross revenue. Aliyah's Boutique actually
purchased 10,790 units of its product from its manufacturer in Year 1 at an average
cost of $14 per unit. Aliyah's Boutique began Year 1 with 44,000 units of its product
in inventory (carried at an average cost of $14 per unit). Operating expenses
(excluding depreciation) for Aliyah's Boutique in Year 1 were $44,000, depreciation
expense was $19,410, and interest expense was $8,030. Finally, Aliyah's Boutique's
tax rate was 30 percent and Aliyah's Boutique paid of dividend of $1,600 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.
Record your answer as a dollar amount rounded to 0 decimal places; do not include a
dollar sign or any commas in your answer. For example, record $23,456.8905 as
23457.
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