LO 2.1Which of the following represents the components of the income statement for a manufacturing business?

Sales Revenue â€" Cost of Goods Sold = gross profit

Service Revenue â€" Operating Expenses = gross profit

Service Revenue â€" Cost of Goods Manufactured = gross profit

Sales Revenue â€" Cost of Goods Manufactured = gross profit

Sales Revenue â€" Cost of Goods Sold = gross profit

Explanation:

In order to determine the income statement components, the following component is shown

Gross profit = Sales revenue - the cost of goods sold

where,

Sales revenue represents the sales of the business organization

And, the cost of goods sold would be

= Opening inventory + Purchase - ending inventory

By deducting the cost of goods sold from the sales revenue the gross profit can arrive