Question

What are net sales if net income = $75,000, cost of goods sold = $30,000, and the gross profit percentage is 40%? (it's 50,000 but i don't know how to get that)

Answer 1

To calculate net sales, you can use the formula:

Net Sales = Cost of Goods Sold / Gross Profit Percentage

Given that the cost of goods sold is $30,000 and the gross profit percentage is 40%, we can calculate net sales as:

Net Sales = $30,000 / 0.40

Net Sales = $75,000

Therefore, the net sales are $75,000, which is the same as the net income in this scenario. It seems there might be an error in the answer you provided.