Question

Cushman Company had $846,000 in sales, sales discounts of $12,690, sales returns and allowances of $19,035, cost of goods sold of $401,850, and $291,025 in operating expenses. Gross profit equals:

Answer 1

To find the gross profit of Cushman Company, subtract sales discounts and sales returns and allowances from the total sales to get net sales, then subtract cost of goods sold from net sales. Gross profit for Cushman Company is $412,425.

Step-by-step explanation:

To calculate the gross profit for Cushman Company, we must first determine the net sales by subtracting sales discounts and sales returns and allowances from total sales. Then, we subtract cost of goods sold (COGS) from net sales.

Here's the calculation:

Total Sales: $846,000

Sales Discounts: $12,690

Sales Returns and Allowances: $19,035

Cost of Goods Sold: $401,850

Operating Expenses: $291,025 (not needed in gross profit calculation)

Now, we calculate the net sales:

Net Sales = Total Sales - Sales Discounts - Sales Returns and Allowances

Net Sales = $846,000 - $12,690 - $19,035 = $814,275

Next, we calculate gross profit:

Gross Profit = Net Sales - Cost of Goods Sold

Gross Profit = $814,275 - $401,850 = $412,425

Answer 2

Step-by-step explanation:

I'm pretty sure that gross profit is simply just sales-Cost of goods sold

846,000-401,850= 444,150