Consider the following information pertaining to Company  C: sales $48,000.sales returns and allowances $6,000. Operating Expenses $6,200. Beginning inventory $900. Net purchases $9,100. Ending inventory $2,300. What the company’s gross profit?

To determine Company C's gross profit, let's follow these steps:

1. **Calculate Net Sales**:
   \[
   \text{Net Sales} = \text{Sales} - \text{Sales Returns and Allowances}
   \]
   \[
   \text{Net Sales} = 48,000 - 6,000 = 42,000
   \]

2. **Calculate Cost of Goods Sold (COGS)**:
   \[
   \text{COGS} = \text{Beginning Inventory} + \text{Net Purchases} - \text{Ending Inventory}
   \]
   \[
   \text{COGS} = 900 + 9,100 - 2,300 = 7,700
   \]

3. **Calculate Gross Profit**:
   \[
   \text{Gross Profit} = \text{Net Sales} - \text{COGS}
   \]
   \[
   \text{Gross Profit} = 42,000 - 7,700 = 34,300
   \]

### Answer:
The company’s gross profit is **$34,300**.

Do you have any questions or would you like more details?

---

1. How is gross profit different from net profit?
2. What is the impact of sales returns on gross profit?
3. How does ending inventory affect the cost of goods sold?
4. What are operating expenses, and how do they affect net profit?
5. How could Company C improve its gross profit margin?

**Tip:** Remember, gross profit focuses solely on the revenue from sales minus the direct cost to produce goods, while operating expenses are considered later for net profit.

Consider the following information pertaining to Company C: sales $48,000, sales returns and allowances $6,000, operating expenses $6,200, beginning inventory $900, net purchases $9,100, ending inventory $2,300. What is the company’s gross profit?

Learn how to calculate Company C's gross profit with details on revenue, sales returns, beginning inventory, and net purchases. Understand key formulas and step-by-step calculations to determine gross profit accurately.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation