During March 2020, Torres Company generated sales revenues of $155,000. The company's sales returns and allowances were $25,000 and sales discounts were $5,000 Torres' expenses were as follows: cost of goods sold of $85,000, operating expenses of $35,000, interest expense of $3,000 and a gain on disposal of plant assets of $15,000. The company's gross profit for the month is

Question

Quizplus · Accepted Answer

Gross profit = Sales revenues - (Sales returns and allowances + Sales discounts) - Cost of goods sold= $155,000 - ($25,000 + $5,000) - $85,000= $155,000 - $30,000 - $85,000= $40,000

During March 2020, Torres Company Generated Sales Revenues of $155,000