Question

Short Corp. reported net income of $63,000 for the year and had a tax rate of 30%. Net sales were $300,000 and Operating expenses were $90,000 for the year. Assuming there were no other revenues and expenses, what did Short report for cost of goods sold for the year?

Answer 1

Answer:

Cost of goods sold  : $ 120.000

Explanation:

income before taxes   : 63000 / 0.7 = 90000  

(+) expenses                                          90.000

Total                                                      180.000

(-) net sales                                         300.000

= cost of goods                                   120.000