Olde Tyme Beverage Company's operating activities for the year are listed below. $$\begin{array} { | l | r | }
\hline \text { Purcheses } & \$ 126,000 \
\hline \text { Operating expenses } & 90,000 \
\hline \text { Bepinging inventory } & 14,000 \
\hline \text { Ending inventory } & 10,000 \
\hline \text { Sales revenue } & 250,000 \
\hline
\end{array}$$
-What is the gross profit for the year?
A)$147,000
B)$143,000
C)$ 63,000
D)$275,000

Question

Olde Tyme Beverage Company's operating activities for the year are listed below. $$\begin{array} { | l | r | } 
\hline \text { Purcheses } & \$ 126,000 \
\hline \text { Operating expenses } & 90,000 \
\hline \text { Bepinging inventory } & 14,000 \
\hline \text { Ending inventory } & 10,000 \
\hline \text { Sales revenue } & 250,000 \
\hline
\end{array}$$ 
-What is the gross profit for the year?
A)$147,000
B)$143,000
C)$ 63,000
D)$275,000

Quizplus · Accepted Answer

To calculate the gross profit, we need to subtract the cost of goods sold from the net sales revenue. 
Gross profit = Net sales revenue - Cost of goods sold 
From the given information, we have: 
Net sales revenue = $600,000 
Cost of goods sold = ($400,000 + $53,000) = $453,000 
Therefore, Gross profit = $600,000 - $453,000 = $147,000. 
Hence, option A) is the correct answer.

Olde Tyme Beverage Company's Operating Activities for the Year Are