The Willie Company has provided the following information:
Operating expenses were $345,000;
Income from operations was $215,000;
Net sales were $1,100,000;
Interest expense was $71,000;
Discontinued operations loss was $87,000;
Income tax expense was $58,000.
What was Willie's cost of gross profit?
A)$540,000
B)$469,000
C)$618,000
D)$560,000

Question

The Willie Company has provided the following information:
 Operating expenses were $345,000;
Income from operations was $215,000;
 Net sales were $1,100,000;
 Interest expense was $71,000;
Discontinued operations loss was $87,000;
Income tax expense was $58,000.
What was Willie's cost of gross profit?
A)$540,000
B)$469,000
C)$618,000
D)$560,000

Quizplus · Accepted Answer

Gross profit ($560,000) equals operating expenses ($345,000) plus income from operations ($215,000).

The Willie Company Has Provided the Following Information