Calculate gross proﬁt given the following information: accounts receivable = $3,500; inventory = $4,500; receivable turnover = 80 times; inventory turnover = 18 times.
A) $199,000
B) $209,000
C) $219,000
D) $229,000
E) $239,000

Question

Quizplus · Accepted Answer

Gross profit = (Accounts receivable * Receivable turnover) + (Inventory * Inventory turnover)= ($3,500 * 80) + ($4,500 * 18)= $280,000 + $81,000= $361,000

Calculate Gross Proﬁt Given the Following Information: Accounts Receivable =