**Educational Website Content: Understanding Cost of Goods Sold (COGS)** **Question:** If you have Sales of $100,000, Operating Expenses of $25,000, and Net Income of $15,000: What is the Cost of Goods Sold? **Options:** - $40,000 - $60,000 (selected) - $140,000 - $75,000 **Explanation:** To find the Cost of Goods Sold (COGS), we need to use the information given and the following equation for Net Income: \[ \text{Net Income} = \text{Sales} - \text{COGS} - \text{Operating Expenses} \] Given: - Sales (Revenue) = $100,000 - Operating Expenses = $25,000 - Net Income = $15,000 We rearrange the equation to solve for COGS: \[ \text{COGS} = \text{Sales} - \text{Operating Expenses} - \text{Net Income} \] Plugging in the given values: \[ \text{COGS} = 100,000 - 25,000 -15,000 \] \[ \text{COGS} = $60,000 \] Therefore, the Cost of Goods Sold is $60,000.
**Educational Website Content: Understanding Cost of Goods Sold (COGS)** **Question:** If you have Sales of $100,000, Operating Expenses of $25,000, and Net Income of $15,000: What is the Cost of Goods Sold? **Options:** - $40,000 - $60,000 (selected) - $140,000 - $75,000 **Explanation:** To find the Cost of Goods Sold (COGS), we need to use the information given and the following equation for Net Income: \[ \text{Net Income} = \text{Sales} - \text{COGS} - \text{Operating Expenses} \] Given: - Sales (Revenue) = $100,000 - Operating Expenses = $25,000 - Net Income = $15,000 We rearrange the equation to solve for COGS: \[ \text{COGS} = \text{Sales} - \text{Operating Expenses} - \text{Net Income} \] Plugging in the given values: \[ \text{COGS} = 100,000 - 25,000 -15,000 \] \[ \text{COGS} = $60,000 \] Therefore, the Cost of Goods Sold is $60,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![**Educational Website Content: Understanding Cost of Goods Sold (COGS)**
**Question:**
If you have Sales of $100,000, Operating Expenses of $25,000, and Net Income of $15,000:
What is the Cost of Goods Sold?
**Options:**
- $40,000
- $60,000 (selected)
- $140,000
- $75,000
**Explanation:**
To find the Cost of Goods Sold (COGS), we need to use the information given and the following equation for Net Income:
\[ \text{Net Income} = \text{Sales} - \text{COGS} - \text{Operating Expenses} \]
Given:
- Sales (Revenue) = $100,000
- Operating Expenses = $25,000
- Net Income = $15,000
We rearrange the equation to solve for COGS:
\[ \text{COGS} = \text{Sales} - \text{Operating Expenses} - \text{Net Income} \]
Plugging in the given values:
\[ \text{COGS} = 100,000 - 25,000 -15,000 \]
\[ \text{COGS} = $60,000 \]
Therefore, the Cost of Goods Sold is $60,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c2b83f9-7581-44f1-874e-d80ccdd33d2d%2F998add2a-b072-411c-8bb7-30d5b72a73b1%2Fm52e9pr.jpeg&w=3840&q=75)
Transcribed Image Text:**Educational Website Content: Understanding Cost of Goods Sold (COGS)**
**Question:**
If you have Sales of $100,000, Operating Expenses of $25,000, and Net Income of $15,000:
What is the Cost of Goods Sold?
**Options:**
- $40,000
- $60,000 (selected)
- $140,000
- $75,000
**Explanation:**
To find the Cost of Goods Sold (COGS), we need to use the information given and the following equation for Net Income:
\[ \text{Net Income} = \text{Sales} - \text{COGS} - \text{Operating Expenses} \]
Given:
- Sales (Revenue) = $100,000
- Operating Expenses = $25,000
- Net Income = $15,000
We rearrange the equation to solve for COGS:
\[ \text{COGS} = \text{Sales} - \text{Operating Expenses} - \text{Net Income} \]
Plugging in the given values:
\[ \text{COGS} = 100,000 - 25,000 -15,000 \]
\[ \text{COGS} = $60,000 \]
Therefore, the Cost of Goods Sold is $60,000.
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