During the year ended 30 June 2016,Rico Ltd had net sales of $750 000 and net purchases of $440 000.Cost of goods sold was $475 000.What was Rico Ltd's gross profit for the year ended 30 June 2016?
A) $240 000
B) $275 000
C) $310 000
D) $475 000

Question

Quizplus · Accepted Answer

Gross profit is calculated as net sales minus the cost of goods sold.

Net sales = $750,000

Cost of goods sold = $475,000

Gross profit = net sales - cost of goods sold

Gross profit = $750,000 - $475,000

Gross profit = $275,000

Therefore, the answer is choice B, $275,000.

During the Year Ended 30 June 2016,Rico Ltd Had Net