Maxwell Company's financial information is presented below.
$\begin{array}{lrlr}
\text { Sales } & € ? ? ? ? & \text { Cost of Goods Sold } & € 360,000 \
\text { Sales Returns and Allowances } & 40,000 & \text { Gross Profit } & ? ? ? ? \
\text { Net Sales } & 600,000 & &
\end{array}$
The missing amounts above are:
$\begin{array}{lll}&\text { \quad Sales }&\text { Gross Profit }\\end{array}$

Question

Maxwell Company's financial information is presented below.
$\begin{array}{lrlr}
\text { Sales } & € ? ? ? ? & \text { Cost of Goods Sold } & € 360,000 \
\text { Sales Returns and Allowances } & 40,000 & \text { Gross Profit } & ? ? ? ? \
\text { Net Sales } & 600,000 & &
\end{array}$
The missing amounts above are: 
$\begin{array}{lll}&\text { \quad Sales }&\text { Gross Profit }\\end{array}$

Quizplus · Accepted Answer

Net Sales = Sales - Sales Returns and Allowances. Given Net Sales = €600,000 and Sales Returns and Allowances = €40,000, Sales = €640,000. Gross Profit = Net Sales - Cost of Goods Sold = €600,000 - €360,000 = €240,000.

Maxwell Company's Financial Information Is Presented Below The Missing Amounts Above Are