A company reports net income of $60,000 and cost of goods sold of $360,000. The company's gross

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A company reports net income of $60,000 and cost of goods sold of $360,000. The company's gross profit rate is 40%. Compute its net sales.

A) $216,000

B) $960,000

C) $900,000

D) $600,000

E) $660,000

Please show your steps I am studying for a test. I just can't figure out how to use the 40% within Gross Profit. Is it correct that you would do GP - COGS = NS?

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Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

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Posted Date: Oct 07, 2022 07:25 AM

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A company reports net income of $60,000 and cost of goods sold of $360,000. The company's gross

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Answer D 600000 Explanation Always Sales percentage i... View the full answer

Financial ACCT2

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