ABC Inc Had Net Sales of $120,000 During 2013

question 163

Multiple Choice

ABC Inc. had net sales of $120,000 during 2013. Its finished goods inventories were valued at $20,000 on January 1^st, 2013. During the year, $60,000 of goods was purchased for resale. The company has a gross profit percentage of 40%. What was the company's cost of goods sold for 2013?

• A) $8,000.
• B) $72,000.
• C) $48,000.
• D) $60,000.