Approach: Follow the two steps as illustrated above (these steps are diagrammed in Illustration 61). Plug in the amounts known and solve.
If you cannot recall the steps diagrammed in Illustration 6-1 or do not want to memorize more formulas, write down the basic formulas or equations to compute the cost of goods sold and gross profit. Enter the amounts given and solve for the rest. For example:
|Solving for X:||X = $100,000 Sales - $25,000 Gross profit = $75,000 Estimated cost of goods sold|
|Solving for y:||$ 111,000 - X = Y