Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Net income equals:.
a) $770,000.
b) $402,000.
c) $390,000.
d) $115,000.
e) $408,000.

The net income is $115,000

Explanation:

In this question, we are asked to calculate the net income.

Firstly, we calculate the net sales. The value of the net sales is simply total sales minus sales discount = 800,000 - 12,000 = 788,000

Secondly, we calculate the value of all the expenses: According to the question, this is equal to sales returns and allowances + cost of goods sold + operating expenses= 18,000 + 380,000 + 275,000 = 673,000

Net income = net sales - total expenses = 788,000 - 673,000 = $115,000

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know