Question 4

• The Skeletal P&L includes Net Sales, Cost of Goods Sold, Gross Margin, Operating Expenses, and Profit or Loss.When calculating the results, which one of the following is true:

• 1)Profit/Loss + Operating Expenses = Gross Margin

Gross Margin + Cost of Goods Sold = Net Sales

• 2) Profit/Loss + Operating Expenses = Gross Margin

Gross Margin + Cost of Goods Sold = Gross Sales

• 3) Profit/Loss + Operating Expenses + Gross Margin + Cost of Goods Sold = Net Sales
• 4) Profit/Loss + Operating Expenses + Gross Margin + Cost of Goods Sold = Gross Sales