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24 November, 09:47

A company reported the following:

Cost of Goods Sold $ 230,000

General, Selling, and Administrative Expenses 10,000

Income Tax Expense 9,700

Inventory 18,000

Net Income 27,900

Sales Revenue 285,000

Sales Discounts 3,900

Sales Returns and Allowances 3,050

What is the amount of gross profit?

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  1. 24 November, 11:25
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    The gross profit is $51950.

    Explanation:

    To calculate the gross profit, we will make the extract of income statement that relates to Gross profit.

    Sales Revenue 285000

    Less: Sales Returns (3050)

    Net Sales 281950

    Less: Cost of Goods Sold (230000)

    Gross profit 51950
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