1 Garza Company had sales of 145000 sales discounts of 2175

1. Garza Company had sales of $145,000, sales discounts of $2,175, and sales returns of $3,480. Garza Company\'s net sales equals:

2. A company had net sales of $776,600 and cost of goods sold of $556,100. Its net income was $22,960. The company\'s gross margin ratio equals:

3. Cushman Company had $816,000 in sales, sales discounts of $12,240, sales returns and allowances of $18,360, cost of goods sold of $387,600, and $280,705 in operating expenses. Gross profit equals:

Solution

1.net sales=Sales-Sales discounts-Sales returns

=(145000-2175-3480)

which is equal to

=$139,345

2.

gross margin=Net sales-COGS

=(776600-556100)=$220500

gross margin ratio=gross margin/Net sales

=(220500/776600)=28.39%(Approx)

3.

net sales=(816000-12240-18360)=$785400

Hence Gross profit=(785400-387600)=$397800.