Net Sales

Based on the following, calculate net sales:

Purchases $99 Sales Discount $15

Gross Sales 179 Operating Expenses 45

Sales Returns and Allowances 13

Cost of Goods Sold

Calculate Cost of Goods Sold:

LO1 (5 min)

Freight-In $3

Ending Inventory $2

Beginning Inventory 6

Net Purchases 65

Gross Profit and Net Income

From the following information, calculate:

Gross profit

Net income or net loss

Purchases, $98;

Gross Sales, $180;

Sales Returns and Allowances, $17;

Sales Discounts, $23;

Operating Expenses, $46;

Net Sales, $140;

Freight-In, $8;

Beginning Inventory, $16;

Ending Inventory, $5;

Net Purchases, $65;

Cost of Goods Sold, $84