The following information applies to the questions displayed below/ The followin

Question

The following information applies to the questions displayed below/ The following is a listing of some of the balance sheet accounts and all of the inco for Aldine Inc as they appear on the company's adjusted trial balance. me statement accounts Accounts Payable Accounts Receivable Inventory Advertising Expense Cost of Goods Sold Delivery Expense Income Tax Expense Insurance Expense Rent Expense Sales Revenue Sales Discounts Sales Returns and Allowances S 18,000 30,000 23 800 21,500 165,000 7,900 3,700 1.000 19.600 350,000 47,500 Required: Using the above data, calculate all of the following 1. Net Sales 2. Gross Proft

Explanation / Answer

1 . Net sales = 350000 - 9100 -47500

= $ 293400

2. gross profit = Net sale - COGS

= 293400 - 165000

= $ 128400

3.Income from operation = Gross profit - Operating expense

= 128400 - 21500 -7900 -1000 - 19600

=$ 78400

4.Net income = 78400 - 3700

= $ 74700

5. Gross profit percentage = GP / Net Sales

= 128400 / 293400

= 43.76 %

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