Is zakat obligatory on goods displayed for sale in a commercial store, even if the income is low and there are still outstanding debts? And if it is obligatory, how is it calculated and distributed?

Zakat is not waived for commercial shops due to low profit. Trade goods are subject to Zakat by appraising the value of the merchandise prepared for sale after the passage of a lunar year. If their value, either alone or combined with other assets, reaches the Nisab (the equivalent of 85 grams of pure gold), then a quarter of a tenth (2.5%) must be given as Zakat. As for debts, if there are other assets exceeding one's needs, they should be used to offset the debt, and Zakat is then paid on the full amount of the assets. Otherwise, the debt is deducted from the value of the shop. If, after the deduction, the remaining amount reaches the Nisab, Zakat is paid; otherwise, it is not.