Newark Company has provided the following information:
Cash sales,$450,000
Credit sales,$1,350,000
Selling and administrative expenses,$330,000
Sales returns and allowances,$90,000
Depreciation expense,$101,000
Gross profit,$1,360,000
Increase in accounts receivable,$55,000
Bad debt expense,$33,000
Sales discounts,$43,000
How much is Newark's cost of goods sold?

Question

Newark Company has provided the following information:
 Cash sales,$450,000
 Credit sales,$1,350,000
 Selling and administrative expenses,$330,000
 Sales returns and allowances,$90,000
 Depreciation expense,$101,000
Gross profit,$1,360,000
Increase in accounts receivable,$55,000
 Bad debt expense,$33,000
 Sales discounts,$43,000
How much is Newark's cost of goods sold?

Quizplus · Accepted Answer

Net sales ($450,000 + $1,350,000 - $90,000 - $43,000) minus cost of goods sold ($307,000) equals gross profit ($1,360,000).

Newark Company Has Provided the Following Information