Operating Expenses Sales Returns and Allowances Sales Discou

Operating Expenses Sales Returns and Allowances Sales Discounts Sales Revenue Cost of Goods Sold 45,000 9,000 6,000 160,000 87,000 Financial information is presented below: Gross profit would be $13,000. $58,000. $64,000. $67,000

Solution

Gross Profit = Net Sales - Cost of Goods Sold

= $ 145,000 - $ 87,000

= $ 58,000

Hence the correct answer is $ 58,000

Note :

Sales Revenue	1,60,000
Less: Sales Returns and Allowances	-9,000
Less: Sales Discounts	-6,000
Net Sales	1,45,000