During August, 2011, Joe's Supply Store generated revenues of $30,000.The company's expenses were as follows: cost of goods sold of $12,000 and operating expenses of $2,000.The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000. Joe's gross profit for August, 2011 is

Question

Quizplus · Accepted Answer

Gross profit is calculated as revenues minus the cost of goods sold. Therefore, $30,000 (revenues) - $12,000 (cost of goods sold) = $18,000.

During August, 2011, Joe's Supply Store Generated Revenues of $30,000