Calculate: (A)net Sales, (B)cost of Goods Sold, (C)gross Profit,and (D)net

question 93

Short Answer

Calculate: (a)net sales, (b)cost of goods sold, (c)gross profit,and (d)net income from the following:
$$\begin{array} { l r l r } \text { Sales } & \$ 2,000 & \text { Beginning Inventory } & \$ 500 \\\text { Sales Discount } & 50 & \text { Net purchases } & 1,200 \\\text { Sales Returns \& } & & \text { Ending Inventory } & 700 \\\text { Allowances } & 80 & \text { Operating Expenses } & 300\end{array}$$

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Definitions:

Exchange Rate

The conversion rate from one currency to another.

Imports

Merchandise or services entering a nation from a foreign country, intended for sale or application.

Exports

Exports refer to goods or services sent from one country to another for sale or trade, contributing to a nation's gross domestic product.

Trade Deficit

An economic measure of a negative balance of trade where a country's imports exceed its exports over a given period.