Question

the company's gross profit on the following sales $48,000 sales returns and allowances $6000 operating expenses $6,200 beginning inventory of $900 net purchases $9100 ending inventory $2,300

Answer 1

Sales:                                              48,000
Sales returns and allowances: ( 6,000)
Net Sales                                        42,000

Cost of Sales:
Beginning Inventory:  900
net purchases             9100
ending inventory       (2,300)        (7,700)
Gross Margin                                  35,000
Operating Expenses                       (6,200)
Gross profit                                       28,800