A company reported a gross profit percentage of 20% with net sales of $347,800.What is the amount of cost of goods sold?
A)$69,560
B)$278,240
C)$260,850
D)$86,950

Question

Quizplus · Accepted Answer

Gross profit = Net sales × Gross profit percentage
= $347,800 × 0.20 = $69,560
Net sales − Cost of goods sold = Gross profit
Cost of goods sold = Net sales − Gross profit
= $347,800 − $69,560 = $278,240

A Company Reported a Gross Profit Percentage of 20% with Net