Question

Compute net sales, gross profit, and the gross margin ratio for each separate case a through d. (Round gross margin ratio to 1 decimal place) can you also steps to do it.
Sales $150,000 $550,000 $38,700 $255,700
Sales discounts 5,000 17,500 600 4,800
Sales returns and allowances 20,000 6,000 5,100 900
Cost of goods sold 79,750 329,589 24,453 126,500

Answer 1

Answer:

Particulars                 Amount    Amount      Amount    Amount

                                        $               $                 $                 $

Sales                           150,000   550,000     38,700      255,700

Less: Sales Discount   5,000      17,500          600           4,800

Less: Sales return &     20,000     6,000         5,100           900

allowances

Net Sales                      125,000    526,000     33,000 250,000

Less: Cost of goods      79,750     329,589     24,453      126,500

sold

Gross Profits                  45,250      196,911       8,547     123,500

Gross margin ratio         36.20%       37.40%     25.90%     49.40%

Note: Gross Margin ratio is derived by (Net Sales - Cost of Goods) / Net sales * 100