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Scuba Company had net income on the current year's income statement in the amount of $800,000,...

Scuba Company had net income on the current year's income statement in the amount of $800,000, other expense in the amount of $400,000 and a gross profit ratio of 58%, what was the amount of net sales on the income statement?

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Answer #1

Answer;

Net income + other expenses = Gross Profit = $800,000+$400,000 = $12,00,000

Gross profit ratio = (Gross profit/Net sales) * 100

58% = (12,00,000/Net sales) * 100

=>Net sales = $20,68,965

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