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20 August, 09:59

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

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  1. 20 August, 13:49
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    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
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