Question

calculate net sales and gross profit from the following information cost of goods sold rupees 100000 gross profit 20%on sale​

Answer 1

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