Suppose a company reports the following information at December 31,2013: $\begin{array}{llll}
\text { Sales } &\$ &15,000,000\
\text { Cash } &\$ & 3,000,000 \
\text { Uneaned Revenue } &\$ & 400,000 \
\text { Dividends } &\$ & 1,000,000 \
\text { Cost of Sales } &\$ & 8,500,000
\end{array}$

-What is the company's Gross Profit?

Question

Suppose a company reports the following information at December 31,2013: $\begin{array}{llll}
 \text { Sales } &\$ &15,000,000\
 \text { Cash } &\$ & 3,000,000 \
 \text { Uneaned Revenue } &\$ & 400,000 \
 \text { Dividends } &\$ & 1,000,000 \
 \text { Cost of Sales } &\$ & 8,500,000
\end{array}$

-What is the company's Gross Profit?

Quizplus · Accepted Answer

Gross Profit is calculated as Sales minus Cost of Sales. Therefore, Gross Profit = $15,000,000 - $8,500,000 = $6,500,000.

Suppose a Company Reports the Following Information at December 31,2013