Net income is $ 15,000 , operating expenses are $ 20,000 , and net sales total $ 75,000 . How much is cost of goods sold ?
Question 7
Cost of goods sold is subtracted from net sales to calculate gross profit .
Which one of the following will result in gross profit ?
Question 8
Under the periodic inventory system , cost of goods sold for the period is calculated by adding purchases for the period to the beginning inventory balance and subtracting the ending inventory balance .
Under what system is cost of goods sold determined at the end of an accounting period ?
Question 9
Net income ($ 15,000 ) divided by net sales ($ 75,000 ) equals profit margin of 20 %.