Question

united services and supplies reports net income of $100000 and cost of goods of $353000. If US&S's gross profit rate was 30%, net sales were

Answer 1

Net sales is $ 504285.71

Explanation:

We have the following:

Let net sales be x.

Net sales - Cost of goods sold = Gross profit

We replace and we are left with:

x - $ 353000 = x * 30%

x - $ 353000 = 0.30 * x

x - 0.30 * x = $ 353000

0.7 * x = $ 353000

x = $ 353000 / 0.7

x = $ 504285.71

Therefore, net sales is $ 504285.71