The Following Information Is Available for Sheldon Leonard Company Compute Each of the Following:
(A) Net Sales
(B) Gross

question 17

Essay

The following information is available for Sheldon Leonard Company: $\begin{array}{lr}\text { Operating expenses } & \$ 85,000 \\\text { Cost of goods sold } & 200,000 \\\text { Sales revenue } & 325,000 \\\text { Sales returns and allowances } & 16,000 \\\text { Sales discounts } &3,000 &\end{array}$ Compute each of the following:
(a) Net sales
(b) Gross profit

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Definitions:

Budgeted Cash Receipts

An estimate of all cash inflows a company expects to receive during a particular period based on expected sales or other income sources.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of materials and labor but not distribution or sales costs.