View Full Version : Gross margin
angle1
Mar 13, 2008, 12:21 PM
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
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
Jun 5, 2008, 08:39 AM
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)