Prather Inc. has sales of $100,000, sales returns of $5,000, cost of goods sold of $60,000, and selling expenses of $3,000. Calculate gross profit.

The answer is $35000

Explanation:

Gross profit is net sales minus the cost of goods sold. It reveals the amount that a business earns from the sale of its goods and services before the application of additional selling and administrative expenses.

Gross profit = sales - sales returns - cost of goods sold

Gross profit = $100000 - $5000 - $60000