Joe's Kites is preparing an income statement.Net sales equal $175,000.Returns and allowances equal $16,000.Costs of goods sold equal $95,000.What is Joe's gross margin?

Name: Joe's Kites is preparing an income statement.Net sales equal $175,000.Returns and allowances equal $16,000.Costs of goods sold equal $95,000.What is Joe's gross margin?
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Question

Quizplus · Accepted Answer

Gross Margin = Net Sales - Cost of Goods Sold
Gross Margin = $175,000 - $95,000
Gross Margin = $80,000

Joe's Kites Is Preparing an Income Statement