Tuity Fruity Beverage Company's operating activities for the year below are listed:Purchases $140,000Operating expenses 80,000Beginning inventory 12.000ending inventory 18,000sales revenue 300,000What is the gross profit for the year? (a) $166,000 (b) $300,000 (c) $80,000 (d) $160,000

Answer: Option (A) is correct.

Explanation:

Given that,

Purchases = $140,000

Operating expenses = $80,000

Beginning inventory = $12,000

Ending inventory = $18,000

Sales revenue = $300,000

Goods available = Beginning inventory + Purchases

= $12,000 + $140,000

= $152,000

Cost of goods sold = Goods available - Ending inventory

= $152,000 - $18,000

= $134,000

Gross profit = Sales revenue - Cost of goods sold

= $300,000 - $134,000

= $166,000