https://file.aiquickdraw.com/mathbot/file/1727419736909zlidwzo3.jpg

To calculate the required (a) net sales and (b) gross profit, we will use the information provided in the image.

### Step 1: Calculate **Net Sales**
Net sales are calculated as:
\[
\text{Net Sales} = \text{Total Sales} - \text{Sales Returns} - \text{Sales Discounts}
\]
- **Total Sales**: Cash Sales + Sales on Credit = $60,000 + $90,000 = $150,000
- **Sales Returns**: $11,000
- **Sales Discounts**: $2,000

Thus, the net sales are:
\[
\text{Net Sales} = 150,000 - 11,000 - 2,000 = 137,000
\]

### Step 2: Calculate **Gross Profit**
Gross profit is calculated as:
\[
\text{Gross Profit} = \text{Net Sales} - \text{Cost of Goods Sold (COGS)}
\]
- **Cost of Goods Sold (COGS)**: $80,000

Thus, the gross profit is:
\[
\text{Gross Profit} = 137,000 - 80,000 = 57,000
\]

### Summary:
- **Net Sales**: $137,000
- **Gross Profit**: $57,000

Would you like further details or explanations? Here are some questions to expand your understanding:

1. How do sales returns and discounts impact overall revenue?
2. What is the significance of gross profit in financial analysis?
3. How can companies reduce their cost of goods sold (COGS)?
4. Why is it important to differentiate between cash sales and credit sales?
5. What would be the impact of increasing sales discounts on gross profit?

**Tip:** Gross profit helps in determining how efficiently a company is producing and selling its products relative to production costs.

Vitamix reports cash sales of $60,000, sales on credit of $90,000, general and administrative expenses of $17,000, sales returns of $11,000, cost of goods sold of $80,000, sales discounts of $2,000, and selling expenses of $24,000. Compute net sales and gross profit.

Learn how to compute net sales and gross profit using Vitamix's financial data, including cash sales, sales on credit, sales returns, and cost of goods sold. This guide covers the formulas and steps to calculate net sales of $137,000 and gross profit of $57,000.

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