Question

Swifty Company's financial information is presented below. Sales Revenue $ p?Cost of Goods Sold 536000 Sales Returns and Allowances 37000 Gross Profit p?Net Sales 868000 The missing amounts above are: Sales Revenue Gross Profit a. $905000 $332,000 b. $832,000 $332,000 c. $ 905,000 $416,000 d. $832,000 $416,000

Answer 1

Answer:

The correct answer is A.

Explanation:

The gross profit is calculated by deducting from net sales the cost of goods sold:

Gross profit= net sales - COGS

Gross profit= 868,000 - 536,000

Gross profit= $332,000

Now, the sales revenues are the sales before returns and allowances. Therefore, we need to add them to the net sales:

Sales revenue= 868,000 + 37,000

Sales revenues= $905,000