LeGrand Corporation reported the following amounts in its income statement: $$\begin{array} { l r }
\text { Sales revenue } & \$ 440,000 \
\text { Advertising expense } & 60,000 \
\text { Interest expense } & 10,000 \
\text { Salaries expense } & 55,000 \
\text { Utilities expense } & 25,000 \
\text { Income tax expense } & 45,000 \
\text { Cost of goods sold } & 180,000
\end{array}$$ What was LeGrand's gross profit?

Question

LeGrand Corporation reported the following amounts in its income statement: $$\begin{array} { l r } 
\text { Sales revenue } & \$ 440,000 \
\text { Advertising expense } & 60,000 \
\text { Interest expense } & 10,000 \
\text { Salaries expense } & 55,000 \
\text { Utilities expense } & 25,000 \
\text { Income tax expense } & 45,000 \
\text { Cost of goods sold } & 180,000
\end{array}$$ What was LeGrand's gross profit?

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from sales revenue. In this case, gross profit is $440,000 - $180,000 = $260,000.

LeGrand Corporation Reported the Following Amounts in Its Income Statement