Question

If sales amount to $150,000, rent expense is $2,000, utilities expense is $3,000, and net income is $55,000, how much is Cost of Goods Sold (calculate and explain)?

Answer 1

COGS = $90,000

Step-by-step explanation:

If sales amount to $150,000, rent expense is $2,000, utilities expense is $3,000, and net income is $55,000, how much is Cost of Goods Sold (calculate and explain)?

net income = sales - COGS - rent expense - utilities expense

do some basic algebra to get COGS by itself on one side of the equation:

COGS = sales - rent expense - utilities expense - net income

COGS = 150,000 = 2,000 - 3,000 - 55,000

COGS = $90,000