Beginning inventory is $28,000. Ending inventory is $47,000. Net purchases for the year are $110,000. The company's normal gross profit percent is 60%. How much is net sales revenue?

Question

Quizplus · Accepted Answer

To find net sales revenue, use the formula: Net Sales = Cost of Goods Sold (COGS) / (1 - Gross Profit Percentage). First, calculate COGS: Beginning Inventory + Net Purchases - Ending Inventory = $28,000 + $110,000 - $47,000 = $91,000. Then, Net Sales = $91,000 / (1 - 0.60) = $227,500.

Beginning Inventory Is $28,000