In 2019, Intersection Company incurred cost of goods sold of $58,215 million on gross sales revenue of $87,592 million. Sales returns and allowances were $7,473 million and sales discounts were $1,752 million.
What is Intersection's gross profit percentage for 2019?

Question

Quizplus · Accepted Answer

Net Sales = Gross sales revenue - Sales returns and allowances - sales discounts
X = $87,592 - $7,473 - $1,752
X = $78,367 = Net Sales
Gross profit on sales = Net Sales - Cost of goods sold
X = $78,367 - $58,215
X = $20,152 = Gross profit on sales
Gross profit percentage = Gross profit on sales / net sales
X = $20,152 / $78,367
X = 0.257 = 25.7%

In 2019, Intersection Company Incurred Cost of Goods Sold of $58,215