MANAGEMENT

Previous
Next

BUISENESS MANAGEMENT

MERCHANDISING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Cushman Company had $830, 000 in sales, sales discounts of $12, 450, sales returns and allowances of $18, 675, cost of goods sold of $394, 250, and $285, 520 in operating expenses. Net income equals:
A
$798, 875.
B
$150, 230.
C
$404, 625.
D
$119, 105.
E
$181, 355.
Explanation: 

Detailed explanation-1: -Cushman Company had $800, 000 in net sales, $350, 000 in gross profit, and $200, 000 in operating expenses. Cost of goods sold equals: $450, 000.

Detailed explanation-2: -d. investing activities section. If sales revenues are $400, 000, cost of goods sold is $310, 000, and operating expenses are $60, 000, the gross profit is: (a) $30, 000.

Detailed explanation-3: -What Is Net Sales? Net sales is the sum of a company’s gross sales minus its returns, allowances, and discounts.

Detailed explanation-4: -Answer and Explanation: Cost of goods sold is an item of the trading account and being a direct cost, it is straightly associated with the conversion of raw material into finished goods. Hence, an increase in the Cost of goods sold will decrease the gross profit.

There is 1 question to complete.
Previous
Next