Exhibit 18-4 The following information is provided for Tampa Company:

-
Refer to Exhibit 18-4.How much gross profit did Tampa Company report in 2011?
A)$1, 300
B)$1, 500
C)$1, 700
D)$2, 000

Question

Exhibit 18-4 The following information is provided for Tampa Company:

- 
Refer to Exhibit 18-4.How much gross profit did Tampa Company report in 2011?
A)$1, 300 
B)$1, 500 
C)$1, 700 
D)$2, 000

Quizplus · Accepted Answer

Gross profit can be calculated by subtracting the cost of goods sold from the total revenue. In 2011, the total revenue from installment sales was $9,500 ($7,000 + $2,500). The cost of goods sold was $8,000. Therefore, gross profit is $1,500 ($9,500 - $8,000).

Exhibit 18-4 the Following Information Is Provided for Tampa Company