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    angle1's Avatar
    angle1 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 13, 2008, 12:21 PM
    Gross margin
    Sales $100,00 Ending
    Inventory 6,000
    Beg, inventory $8,000
    Cost of goods sold 60,000
    With the above info, what was the gross margin and what was the total amount of merchandise that was purchased for the year?


    Any help would be wonderful.
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    Apr 10, 2008, 01:12 AM
    The Gross margin equals (Sales minus Cost of Sales) which is in our case $ 40,000 (100,000-60,000)

    To obtain the amount of purchased merchandise you need to set the Cost of sales formula

    Beginning inventory 8,000

    Plus: Purchases Unknown

    Minus: Ending Inventory 6,000
    Equals: COS 60,000

    The purchases would be $58,000 (60,000+6,000-8,000)
    jspjskchk's Avatar
    jspjskchk Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Jun 5, 2008, 08:39 AM
    Quote Originally Posted by angle1
    Sales $100,00 Ending
    inventory 6,000
    Beg, inventory $8,000
    Cost of goods sold 60,000
    With the above info, what was the gross margin and what was the total amount of merchandise that was purchased for the year?


    Any help would be wonderful.
    Gross Margin = Sales-Cost of Goods Sold
    Hence Sales(100,000-60,000)=Gross Profit($40,000)
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