A company had expenses other than cost of goods sold of $51,000.Determine sales and gross profit given cost of goods sold was $25,000 and net income was $60,000.
A)Sales: $136,000; gross profit: $111,000
B)Sales: $136,000; gross profit: $85,000
C)Sales: $85,000; gross profit: $136,000
D)Sales: $111,000; gross profit: $136,000
E)Sales: $60,000; gross profit: $25,000

Question

Quizplus · Accepted Answer

Net income is calculated as sales minus cost of goods sold and other expenses. Given net income is $60,000 and other expenses are $51,000, the gross profit (sales minus cost of goods sold) is $111,000. Therefore, sales are $136,000 ($111,000 + $25,000).

A Company Had Expenses Other Than Cost of Goods Sold