Question

3) Answer the following questions: Given the following information, answer the questions below Sales $350,000 COGS...

3) Answer the following questions:

  • Given the following information, answer the questions below

      • Sales $350,000
      • COGS $115,000
      • Sales Discount $25,000
      • Sales Returns and Allowances $12,000
      • Net Income is $31,000
    • What are Net Sales?
    • What is Gross Margin (aka Gross Profit)?
    • What is Gross Profit %
    • What is Net Income %
    • Please show the formulas and steps needed to solve please.
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Homework Answers

Answer #1
1
Sales 350000
Less: Sales Discount 25000
Less: Sales Returns and Allowances 12000
Net Sales 313000 =350000-25000-12000
2
Net Sales 313000
Less: COGS 115000
Gross Margin 198000 =313000-115000
3
Gross Margin 198000
Divide by Net sales 313000
Gross Profit % 63.26% (Rounded off to 2 decimal places)
4
Net income 31000
Divide by Net sales 313000
Net Income % 9.90% (Rounded off to 2 decimal places)
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