Financial information is presented below: $$\begin{array} { l r }
\text { Operating expenses } & \$ 42,000 \
\text { Sales returns and allowances } & 12,000 \
\text { Sales discounts } & 3,000 \
\text { Sales revenue } & 165,000 \
\text { Cost of goods sold } & 96,000
\end{array}$$ Gross profit would be
A)$54,000.
B)$57,000.
C)$69,000.
D)$66,000.

Question

Financial information is presented below: $$\begin{array} { l r } 
\text { Operating expenses } & \$ 42,000 \
\text { Sales returns and allowances } & 12,000 \
\text { Sales discounts } & 3,000 \
\text { Sales revenue } & 165,000 \
\text { Cost of goods sold } & 96,000
\end{array}$$ Gross profit would be
A)$54,000.
B)$57,000.
C)$69,000.
D)$66,000.

Quizplus · Accepted Answer

Gross profit is calculated as sales revenue minus cost of goods sold and sales returns and allowances and sales discounts.Gross profit = $165,000 - $96,000 - $12,000 - $3,000 = $54,000

Financial Information Is Presented Below Gross Profit Would Be A)$54,000

Financial Information Is Presented Below Gross Profit Would Be
A)$54,000