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Alpha Company provided the following data concerning its income statement: sales, $975,000; purchases,

$404,000; beginning inventory, $210,000; ending inventory, $257,000; operating expenses, $120,000; freight-in, $5,000; sales discounts, $25,000; purchases discounts, $15,000; sales returns & allowances, $95,000; and purchases returns & allowances, $41,000. The data are complete and provide the basis for preparation of an income statement. How much is net income?

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Income statement 1.png

Income Statement
Revenue:
Sales
$975000
Less: Discount
$25000
Less: Return and Allowance
$95000
Net Sales (A)
$855000
Expense:
Purchase
$404000
Less: Discount
$15000
Less : Return and Allow ance...

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