Question

Calculate gross profit and cost of goods sold from the following information
Net sales = ₹1,00,000
Gross profit is 25%on cost

Answer 1

1,00,000× 25/100
=25000
1,00,000+25000
=1,25,000

Answer 2

$\fontsize{18}{10}{\textup{\textbf{Cost of goods sold=80000, Gross profit =20000.}}}$

Explanation:

Net Sales = 100000

Gross Profit  25% on cost.

Let the cost of goods sold be 'x'.

Then, according to the given information, we have

$\textup{Gross Profit}=\dfrac{25}{100}{x}\\\\ \textup{Cost of goods sold}=\textup{Sales}-{\textup{Gross Profit}}\\\\\Rightarrow{x}=100000-\dfrac{25}{100}{x}\\\\ \Rightarrow{x}+\dfrac{25}{100}{x}=100000\\\\\Rightarrow\dfrac{125}{100}{x}=100000\\\\\Rightarrow{x}=80000.$

And,

$\textup{Gross Profit}=\dfrac{25}{100}{x}\\\\\textup{Gross Profit}=\dfrac{25}{100}*80000\\\\\textup{Gross Profit}=20000.$

Thus, the required cost of goods sold is 80000 and Gross profit is 20000.