Home improvement store reported the following: Gross Sales.. $1,200,000 Customer Returns & Allowances.. $67,000 Cost of...

Home improvement store reported the following: Gross Sales.. $1,200,000 Customer Returns & Allowances.. $67,000 Cost of Goods Sold.. 52% Operating Expenses.. 35% What is the “$ Net Sales” and “$ Net Profit/Net Loss”?

A. $1,267,000 Net Sales; $940,390 Net Profit

B. $1,133,000 Net Sales; $147,290 Net Profit

C. $1,267,000 Net Sales; $940,390 Net Loss

D. $1,133,000 Net Sales; $147,290 Net Loss

Expert Solution


CALCULATION OF THE NET SALES AND NET PROFIT
	Amount	Amount
Gross Sales =	$ 12,00,000
Less: Custoemr Returns and allowances	$ 67,000
Net Sales		$ 11,33,000

Less: Cost of Goods Sold		$ 5,89,160	($ 1,133,000 X 52%)

Gross Revenue		$ 5,43,840

Less: Operating Expenses		$ 3,96,550	($ 1,133,000 X 35%)

Net Profit		$ 1,47,290


Answer = Option B = $ 1,133,000 Net Sales and $ 147,290 Net Profit

jeff jeffy answered 2 years ago

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