Financial information is presented below: $$\begin{array} { l r }
\text { Operating Expenses } & \$ 90,000 \
\text { Sales Returns and Allowances } & 25,000 \
\text { Sales Discounts } & 15,000 \
\text { Sales } & 400,000 \
\text { Cost of Goods Sold } & 212,400
\end{array}$$ Gross profit would be
A) $147600.
B) $57600.
C) $270000.
D) $187600.

Question

Financial information is presented below: $$\begin{array} { l r } 
\text { Operating Expenses } & \$ 90,000 \
\text { Sales Returns and Allowances } & 25,000 \
\text { Sales Discounts } & 15,000 \
\text { Sales } & 400,000 \
\text { Cost of Goods Sold } & 212,400
\end{array}$$ Gross profit would be
A) $147600.
B) $57600.
C) $270000.
D) $187600.

Quizplus · Accepted Answer

Gross profit is calculated as Sales minus Sales Returns and Allowances, Sales Discounts, and Cost of Goods Sold. So, $400,000 - $25,000 - $15,000 - $212,400 = $147,600.

Financial Information Is Presented Below Gross Profit Would Be A) $147600

Financial Information Is Presented Below Gross Profit Would Be
A) $147600