Question

For a recent year, TechMart reported sales of $36,241 million. Its gross profit was $9,785 million. What was the amount of TechMart's cost of goods sold? (Enter answer in millions.)

Answer 1

TechMart's cost of goods sold for the year was $26,456 million, calculated by subtracting the gross profit from the sales.

Step-by-step explanation:

To calculate TechMart's cost of goods sold (COGS), we start from the formula that defines gross profit:

Gross Profit = Sales - Cost of Goods Sold

We are given TechMart's sales figure of $36,241 million and its gross profit of $9,785 million. To find the cost of goods sold, we rearrange the formula:

Cost of Goods Sold = Sales - Gross Profit

Thus, TechMart's cost of goods sold is:

COGS = $36,241 million - $9,785 million = $26,456 million.

This means TechMart spent $26,456 million on the goods that it sold during the year.

Using a Self-check Illustration:

If a firm had sales revenue of $1 million and spent $950,000 on various expenses, the accounting profit would be $50,000. This is found by subtracting total expenses from sales revenue.

Answer 2

$26,456 million.

Step-by-step explanation:

The formula to calculate the gross profit is:

Gross profit=Sales-cost of goods sold

Using this formula we can calculate the cost of goods sold as we have the information about the gross profit and the sales:

Cost of goods sold=Sales-Gross profit

Cost of goods sold=$36,241-$9,785

Cost of goods sold=$26,456

According to this, TechMart's cost of goods sold was $26,456 million.