A company had expenses other than cost of goods sold of $250,000.Determine sales and gross profit given cost of goods sold was $100,000 and net income was $150,000.
A)Sales: $350,000; gross profit: $150,000
B)Sales: $350,000; gross profit: $50,000
C)Sales: $500,000; gross profit: $400,000
D)Sales: $500,000; gross profit: $50,000
E)Sales: $400,000; gross profit: $500,000

Question

Quizplus · Accepted Answer

To find sales, we need to add the cost of goods sold to the gross profit: $100,000 (COGS) + $150,000 (net income) = $250,000 (gross profit)
Then, to find sales, we can use the formula: Sales = COGS + gross profit + expenses other than COGS
$500,000 = $100,000 (COGS) + $250,000 (gross profit) + $250,000 (expenses other than COGS)
Therefore, the answer is C: Sales: $500,000; gross profit: $400,000.

A Company Had Expenses Other Than Cost of Goods Sold