The Callie Company has provided the following information: Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
Income tax expense was $151,000.
What was Callie's gross profit?
A)$564,000.
B)$188,000.
C)$333,000.
D)$232,000.

Question

Quizplus · Accepted Answer

Gross profit is calculated as Net Sales minus Cost of Goods Sold. Therefore, $940,000 - $376,000 = $564,000.

The Callie Company Has Provided the Following Information: Operating Expenses