Cushman Company, Inc. had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. Cost of goods sold equals:
A)$150,000.
B)$450,000.
C)$800,000.
D)$350,000.
E)$200,000.

Question

Quizplus · Accepted Answer

Gross profit is net sales minus cost of goods sold. Therefore, cost of goods sold can be calculated by subtracting gross profit from net sales.

COGS = Net sales - Gross profit 
COGS = $800,000 - $350,000 
COGS = $450,000

Therefore, the correct answer is (B), $450,000.