Question

Spring Fall Total NS COGS GM OE $ 600,000.00 100.00% $ $ 290,000.00 100.00% 780,000.00 $ 350,000.00 $ 75,000.00 100.00% $ 250,000.00

I need help completing this P&L. I do not understand how to find these answers, thank you.

Answer 1

Profit and loss account

particulars	spring	%	fall	%	total	%
	$		$		$
net sales revenue (NS)	600,000.00	100	780,000.00	100	1,380,000.00	100
less: cost of goods sold (COGS)	290,000.00	48.33	430,000.00	55.13	720,000.00	52.17
gross margin (GM)	310,000.00	51.66	350,000.00	44.87	660,000.00	47.83
less: operating expenses(OE)	250,000.00	41.66	275,000.00	35.26	525,000.00	38.04
net profit	60,000.00	10	75,000.00	9.62	135,000.00	9.78

the formulae used in this problem:

gross margin = net sales revenue - cost of goods sold

net profit = gross margin - operating expenses

* as net sales percentage given as 100 % it is taken as base to calculate other percentages

example: cost of goods sold / net sales *100

gross margin / net sales *100