Question

LeGrand Corporation reported the following amounts in its income statement:

Answer 1

Answer:

Correct option is (C)

Explanation:

Given:

Sales revenue = $440,000

Cost of goods sold = $180,000

Gross profit is sales revenue less cost of goods sold.

Gross profit = 440,000 - 180,000

                    = $260,000

Other indirect expenses such as advertising, interest, salaries, utilities and income tax expenses are deducted from gross profit to arrive at net profit.