Question

Tomas Briggs and Sons reviewed their first year operations. Gross sales were $204,000 Customer returns and allowances were $18,000 The cost of the merchandise they sold was $90,000 First-year expenses were $84,000 The overall profit before taxes was $12,000 Represent the following in percentages: Total net sales in dollars were The cost of the merchandise sold was First-year expenses were Overall profit was Don't forget how to calculate net sales!

Answer 1

Percentage of total net sales = 91.17%

The percentage of cost of merchandise sold = 44.11 %

Percentage of First year expenses = 41.17 %

Percentage of Overall profit = 5.88 %

Explanation:

Given:

Gross sales= $204,000

Customer returns and allowances = $18,000

Cost of the merchandise they sold = $90,000

overall profit before taxes = $12,000

Now,

The Net sales = Gross sales - sales returns

or

The net sales = $204,000 - $18,000 = $186,000

Thus,

Percentage of total net sales =
`\frac{\textup{Net sales}}{\textup{Gross sales}}*100`

or

Percentage of total net sales =
`(186,000)/(204000)*100`

or

Percentage of total net sales = 91.17%

Now,

The percentage of cost of merchandise sold =
`\frac{\textup{cost of the merchandise sold }}{\textup{Gross sales}}*100`

or

The percentage of cost of merchandise sold =
`\frac{\textup{90,000}}{\textup{204,000}}*100`

or

The percentage of cost of merchandise sold = 44.11 %

And,

Percentage of First year expenses =
`\frac{\textup{Expenses}}{\textup{Gross sales}}*100`

or

Percentage of First year expenses =
`\frac{\textup{84000}}{\textup{204000}}*100`

or

Percentage of First year expenses = 41.17 %

also,

Percentage of Overall profit =
`\frac{\textup{Overall profit}}{\textup{Gross sales}}*100`

or

Percentage of Overall profit =
`\frac{\textup{12,000}}{\textup{204,000}}*100`

or

Percentage of Overall profit = 5.88 %