A firm reports the following income statement items: sales of $60,550,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold $34,025,000; and interest expense of $750,000.What is the amount of the firm's gross profit?
A)$23,910,000
B)$26,525,000
C)$15,660,000
D)$16,410,000

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting cost of goods sold from sales revenue. Therefore, Gross profit = Sales revenue - Cost of Goods Sold ($60,550,000 - $34,025,000 = $26,525,000)

A Firm Reports the Following Income Statement Items: Sales of $60,550,000;