Financial information is presented below: $$\begin{array} { l r }
\text { Operating Expenses } & \$ 90,000 \
\text { Sales Returns and Allowances } & 26,000 \
\text { Sales Discounts } & 12,000 \
\text { Sales } & 300,000 \
\text { Cost of Goods Sold } & 158,000
\end{array}$$ Gross profit would be
A) $104,000.
B) $116,000.
C) $130,000.
D) $142,000.

Question

Financial information is presented below: $$\begin{array} { l r } 
\text { Operating Expenses } & \$ 90,000 \
\text { Sales Returns and Allowances } & 26,000 \
\text { Sales Discounts } & 12,000 \
\text { Sales } & 300,000 \
\text { Cost of Goods Sold } & 158,000
\end{array}$$ Gross profit would be
A) $104,000.
B) $116,000.
C) $130,000.
D) $142,000.

Quizplus · Accepted Answer

Gross profit is calculated as Sales - Cost of Goods Sold - Sales Returns and Allowances - Sales Discounts. In this case, gross profit is $300,000 - $158,000 - $26,000 - $12,000 = $104,000.

Financial Information Is Presented Below Gross Profit Would Be A) $104,000

Financial Information Is Presented Below Gross Profit Would Be
A) $104,000