A company has $4,500 in net sales, $3,200 in gross profit, $1,300 in ending inventory, and $1,800 in beginning inventory. What is the company’s cost of goods sold?
The answer is -$1,300. Gross Profit is is computed by sales less the cost of goods sold. Since cost of goods sold is missing, and the gross profit and sales is given, just subtract the sales to gross profit. It will go like this: $3200 (gross profit) less $4500 (net sales) will give you -$1,300.
