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?

Question

Business

Ireland Kim

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?

+1

Answers (1)

Know the Answer?

Kaylin Dodson · Answer 1

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

A company reported the following:Cost of Goods Sold $ 230,000General, Selling, and Administrative Expenses 10,000Income Tax Expense 9,700Inventory 18,000Net Income 27,900Sales Revenue 285,000Sales Discounts 3,900Sales Returns and Allowances 3,050What is the amount of gross profit?

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?