USA Need help with Gross Profit Percentage

[Matthew Butler]

So I'm given the following information

Freight in........................$27,000
Purchases.....................$203,000
Beginning Inventory......$55,000
Purchase Discounts.........$4,500
Sales Returns....................$6,000
Purchase Returns.............$6,100
Sales Revenue...............$420,000
Ending Inventory.............$45,000

And the answer is 44.6%

but i'm not sure how it got that. I know the formula is Gross Profit/Net Sales Revenue=Gross Profit Percentage I must be setting up the formula wrong because i'm not even getting close to the answer.

Sales Revenue-Sales Returns give me Net Sales Revenue right?
Gross Profit is Purchases + Beginning Inventory - Ending Inventory - Purchase Returns - Purchase Discounts?
Freight in is an expense right so that makes it irrelevant?

 

[gazmentsaci]

Hello, i got this
Beginning inventory 55,000
Plus net purchases 203,000
Less purchases returns 6,100
Less purchases discount 4,500
Plus freight in 27,000 219,400
Cost of goods available for sale 274,400
Less ending inventory 45,000
Cost of goods sold 229,400

Sales 420,000
Cost of goods sold 229,400
Gross profit 190,600
Gross profit/ sales 45.38%



if you will have anything please contact me