Instructions: Questions 2 to 6 should be completed in Excel….
Instructions: Questions 2 to 6 should be completed in Excel.ABC Company’s cost of goods sold last year was 60%. It is anticipated that this will remain the same in the coming year. Its sales returns and allowances are typically small, normally accounting for 1% of sales. Use the information from Questions 1–3 to estimate the company’s sales returns and allowances, net sales, and cost of goods sold, and calculate its gross margin. (HINT: Calculate the sales returns and allowances by multiplying the Gross Sales by 1%. Then deduct this from Gross Sales to give Net Sales. Then use the Net Sales to calculate Cost of Goods Sold and finally the Gross Margin.)