American Importers Reports Net Income of $50,000 and Cost of Goods

question 125

Multiple Choice

American Importers reports net income of $50,000 and cost of goods sold of $450,000. If the company's gross profit rate was 40%, net sales were

• A) $750,000.
• B) $1,125,000.
• C) $1,175,000.
• D) $825,000.