Question

In analyzing the income statement of Bob Company, you see that cost of goods sold decreased from 2016 to 2017 by 8.2%. The cost of goods sold was $19,000 in 2016. The cost of goods sold to the nearest cent in 2017 was A. $19,769.17. B. $17,442.00. C. $18,652.00. D. $20,679.71.

Answer 1

B

Explanation:

the cost of goods sold in 2017 is

19,000−(19,000×0.082)=17,442

Answer 2

The correct answer option is B. $17,442.00.

Step-by-step explanation:

We know that for Bob Company, the total cost of goods sold in 2016 was $19,000.

In 2017, the total cost of goods sold dropped by 8.2% in comparison to the cost of goods sold in 2016.

Finding the dropped cost:

`8.2%` ×
`19000`
`= (8.2)/(100)` ×
`19000`

`= $1558`

So the cost of goods sold in 2017 = 19000 - 1554 = $17442