If Net Sales on the Operating Statement for Brandywine Company

question 118

Multiple Choice

If net sales on the operating statement for Brandywine Company were $200,000--and gross sales were $240,000--what would the cost of sales be if the gross margin was 20 percent?

• A) $140,000
• B) $168,000
• C) $160,000
• D) $120,000
• E) Cannot be determined without knowing Brandywine's expenses and net profit.