During the year ended 30 June 2019, Rico Ltd had net sales of $750 000 and net purchases of $470 000. Cost of goods sold was $475 000. What was Rico Ltd's gross profit for the year ended 30 June 2019?
A) $240 000
B) $275 000
C) $310 000
D) None of the above

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting cost of goods sold from net sales. Therefore, Rico Ltd's gross profit is $750,000 - $475,000 = $275,000.

During the Year Ended 30 June 2019, Rico Ltd Had