A company has net sales of $752,000 and a cost of goods sold of $543,000. Its net income is...
Question:
A company has net sales of $752,000 and a cost of goods sold of $543,000. Its net income is $17,530. The company's gross margin and operating expenses, respectively, are:
A. $209,000 and $191,470
B. $191,470 and $209,000
C. $525,470 and $227,000
D. $227,000 and $525,470
E. $734,000 and $191,470
Cost Of Goods Sold:
The cost of goods sold, as the name suggests, is the total direct expense of the business in production. It can be determined by using purchases, closing inventory, and beginning inventory.
Answer and Explanation: 1
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View this answerThe correct option is option A. $209,000 and $191,470.
Calculation:
| Net sales | 752,000 |
| Less: COGS | (543,000) |
| Gross Margin | 209,000 |
| Less: Net... |
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Cost of Goods Sold on an Income Statement: Definition & Formula
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Chapter 2 / Lesson 10
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Learn the definition of the cost of goods sold and the formula used to calculate it. Also, learn how the cost of goods sold is calculated using examples.
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