Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

From merchandiser’s income statement you know that Sales revenue is $ 650,000 and the gross margin is 20%. What is the cost of Goods Sold?

user-image
Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/06/10
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option D is the right answer.

Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

in my point of view option D is the correct answer of this question d. $,

Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Answer is D.  $520,000.00 ($650,000.00 x80%)

mehfooz alam khan habib khan
by mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Yes520000 is right answer after less20% gross margin from sales revenue650000..........==========..===========

PAUL PANDI VEERACHAMY
by PAUL PANDI VEERACHAMY , Accountant , United Insurance Brokers (DIFC) Ltd

Gross Margin = Sales - Cost of goods sold

When GM is20%, CGS is80% of sale.

80% of650 K =520 K

 

Answer: D

 

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Agree with previous answers thanks

Wasim khan wazir
by Wasim khan wazir , Finance Specialist , Mott Macdonald

$650000×80/100=520000. So option D

Abdul Majid Khatri
by Abdul Majid Khatri , A Qualified Chartered Accountant , Honeycomb Logistics Pvt. Ltd.

Option (D) $520,000...................!!!!

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

d. $520,000 ===============

Vasanth Ponon Alakkadan
by Vasanth Ponon Alakkadan , Accounts & Admin. Manager , Al Sagar Engineering Company L.L.C.

cost of goods sold = sale  less gross profit ie, $(-)/ = $ option D

Mohammad Iqbal Abubaker
by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

From merchandiser’s income statement you know that Sales revenue is $, and the gross margin is%. What is the cost of Goods Sold? d. $,