10. a company has $4,500 in net sales, $3,200 in gross profit, $1,300 in ending inventory, and $1,800 in…

10. a company has $4,500 in net sales, $3,200 in gross profit, $1,300 in ending inventory, and $1,800 in beginning inventory. what is the company’s cost of goods sold?

10. a company has $4,500 in net sales, $3,200 in gross profit, $1,300 in ending inventory, and $1,800 in beginning inventory. what is the company’s cost of goods sold?

Answer

Explanation:

Step1: Recall the gross - profit formula

Gross profit = Net sales - Cost of goods sold.

Step2: Rearrange the formula to find cost of goods sold

Cost of goods sold = Net sales - Gross profit.

Step3: Substitute the given values

Net sales = $4500, Gross profit = $3200. Cost of goods sold=$4500 - $3200

Answer:

$1300