Reference no: EM133111414

Question - In Year 1, Aliyah's Boutique (a retail clothing company) sold 10,170 units of its product at an average price of $30 per unit. The company reported estimated returns and allowances in Year 1 of 2.0 percent of gross revenue. Aliyah's Boutique actually purchased 10,390 units of its product from its manufacturer in Year 1 at an average cost of $15 per unit. Aliyah's Boutique began Year 1 with 47,880 units of its product in inventory (carried at an average cost of $15 per unit). Operating expenses (excluding depreciation) for Aliyah's Boutique in Year 1 were $47,880, depreciation expense was $16,760, and interest expense was $9,670. Finally, Aliyah's Boutique's tax rate was 30 percent and Aliyah's Boutique paid of dividend of $2,300 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.