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A company reports net income of $60,000 and cost of goods sold of $360,000. The company's gross profit rate is 40%. Compute its net sales.
A company reports net income of $60,000 and cost of goods sold of $360,000. The company's gross profit rate is 40%. Compute its net sales.
A) $216,000
B) $960,000
C) $900,000
D) $600,000
E) $660,000
Please show your steps I am studying for a test. I just can't figure out how to use the 40% within Gross Profit. Is it correct that you would do GP - COGS = NS?
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Accounting The Basis For Business Decisions
Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner
International 11th Edition
007115809X, 978-0071158091
