calculate net sales and gross profit from the following information cost of goods sold rupees 100000 gross profit 20%on sale
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Answer:
Net Sales = Rs. 1,25,000
Gross Profit = Rs. 25,000
Explanation:
Given :
Cost of Goods Sold = Rs. 1,00,000
Gross Profit 20% on Sale
To find :
Calculate Net Sales and Gross Profit
Solution :
Let,
Net Sales = x
★ Net Sales = Cost of Goods Sold + Gross profit
⇒ x = 1,00,000 + 20 % of x
⇒ x - 20 % of x = 1,00,000
⇒ x - 0.2x = 1,00,000
⇒ 0.8x = 1,00,000
⇒ x = 1,00,000 / 0.8
⇒ x = 1,25,000
Net Sales = Rs. 1,25,000
★ Gross Profit =
Gross Profit 20% on Sale
Net Sales = Rs. 1,25,000
⇒ 20 / 100 × 1,25,000
⇒ 25,000
Gross Profit = 25,000
Therefore,
Net Sales = Rs. 1,25,000
Gross Profit = Rs. 25,000
★ Verification :
Gross Profit = Net Sales - Cost Of Goods sold
⇒ 25,000 = 1,25,000 - 1,00,000
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