Reference no: EM132170270
Question - Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 9 percent. Vail engaged in the following transactions for 2018. Sales tax of 9 percent is collected on all sales.
1. Book sales, not including sales tax, for 2018 amounted to $273,000 cash.
2. Cash sales of miscellaneous items in 2018 were $152,000, not including tax.
3. Cost of goods sold was $209,000 for the year.
4. Paid $132,000 in operating expenses for the year.
5. Paid the sales tax collected to the state agency.
Required -
a. What is the total amount of sales tax Vail Book Mart collected and paid for the year?
b. What is the Vail Book Mart's net income for the year?