1- A company had sales of $721,000 and cost of goods sold of $291,000. Its gross profit equals:

A-$430,000
B- $1,012,000
C- $291,000
D- $721,000
E- $(430,000)

2-A company had sales of $379,000 and gross profit of $159,500. Its cost of goods sold was:

A- $379,000
B- $159,500
C- $538,500
D- $219,500
E- $(219,500)

3- A company had expenses other than cost of goods sold of $274,000. Determine sales and gross profit given cost of goods sold was $112,000 and net income was $174,000.

A- Sales: $560,000; gross profit: $448,000
B- Sales: $560,000; gross profit: $62,000
C- Sales: $386,000; gross profit: $62,000
D-Sales: $448,000; gross profit: $560,000
E- Sales: $386,000; gross profit: $174,000

4- A company purchased $3,700 of merchandise on December 5. On December 7, it returned $300 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 is:

A-$300
B- $3,400
C- $3,328
D- $3,700
E- $3,332

5- A company purchased $8,700 worth of merchandise. Transportation costs were an additional $70. The company later returned $1,000 worth of merchandise and paid the invoice within the 4% cash discount period. The total amount paid for this merchandise is:

A- $7,770.00
B- $8,422.00
C- $7,459.20
D- $8,352.00
E- $7,462.00

6- Herald Company had sales of $138,000, sales discounts of $2,300 and sales returns of $3,500. Herald Company's net sales equals:

A- $132,200
B- $135,700
C- $143,800
D- $138,000
E- $5,800

7- A company has sales of $1,520,000, sales discounts of $104,000, sales returns and allowances of $125,000, shipping charges of $17,000, sales commissions of $36,000, net income of $265,500, and cost of goods sold of $422,000. What is the gross profit/margin for the period?

A- $869,000
B- $1,045,000
C- $816,000
D- $1,202,000
E- $1,098,000