Determine Net Sales, Cost of goods sold and Net Income. Additional information follows: Return on total assets is 16% (average total assets is $88,000). Inventory turnover is 6 (average inventory is $6,900). Accounts receivable turnover is 9 (average accounts receivable is $7,900).

Net Sales = $71,100

Cost of Goods Sold = $41,400

Net Income = $12,320

Explanation:

Accounts Receivable Turnover = Net Sales / Average Accounts Receivable

9 = Net Sales / $7,900

Net Sales = $7,900 x 9

Net Sales = $71,100

Inventory Turnover = Cost of Goods sold / Average Inventory

6 = Cost of Goods Sold / $6,900

Cost of Goods Sold = $6,900 x 6

Cost of Goods Sold = $41,400

Return on total assets = Net Income / average total Assets

14% = Net Income / $88,000

Net Income = $88,000 x 14%

Net Income = $12,320