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    MEI13's Avatar
    MEI13 Posts: 1, Reputation: 1
    New Member
     
    #1

    Mar 3, 2013, 08:32 PM
    Sales
    Sales
    Cost of goods sold $ 575,000
    Gross profit $1,600,00
    General and administrative expense $ 200,000
    Selling and marketing expense
    Depreciation $ 50,000
    Operating income
    Interest $ 100,000
    Income before taxes
    Income taxes (30%)
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 4, 2013, 07:25 AM
    Simply work your problem backwards, which means you need to solve for sales. Since you know what your gross profit is and what your cost of goods sold is you simply add your cost of goods sold to your Gross profit to get your sales.

    Sales - Cost of Goods Sold = Gross profit

    So rewritten looks like this:
    Sales = Gross Profit + Cost of Goods Sold.

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