New Hope,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information:

How much is the gross profit for the year?

Question

New Hope,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information:

How much is the gross profit for the year?

Quizplus · Accepted Answer

C)Cost of Goods Sold = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory = $43,000 + $347,000 + $15,200 - 56,500 = $348,700
Gross Profit = Sales Revenue - Cost of Goods Sold = $535,000 - $348,700 = $186,300