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What is the Cost of Goods Sold formula? Beginning Inventory Plus: Net Purchases Equals: Cost of Goods Available for Sale Minus: Ending Inventory Equals: Cost of Goods Sold What is the other way to express this formula? Beginning Inventory Plus: Net Purchases Equals: Cost of Goods Available for Sale Minus: Cost of Goods Sold Equals: Ending Inventory How do you compute Net Purchases? Purchases Plus: Freight-in Minus: Purchase Returns & Allowances Minus: Purchase Discounts Equals: Net Purchases How do you compute Net Sales? Sales Revenue Minus: Sales Returns and Allowances Minus: Sales Discounts Equals: Net Sales How do you compute Gross Profit? Net Sales Minus: Cost of Goods Sold Equals: Gross Profit

How do you compute Gross Profit Percentage? Gross Profit Net Sales x 100 =Gross Profit Percentage...