Company X sells widgets The following information summarizes

Company X sells widgets. The following information summarizes the company\'s operating activities for the year Beginning inventory Sales revenue Sales commissions Rent for office Utilities for the office Purchases Ending inventory $7,300 $25,400 $200 $2,900 $1,100 $6,800 $5,600 What is gross profit? O A. $15,800 O B. $21,800 OC. $16.900 O D. $12,700

Solution

Cost of goods sold = Beginning inventory+Purchase-Ending inventory

= 7300+6800-5600

Cost of goods sold = 8500

Gross profit = Sales revenue-Cost of goods sold

= 25400-8500

Gross profit = 16900

So answer is c) $16900