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Rom4ik [11]
3 years ago
7

LO 2.1Which of the following represents the components of the income statement for a manufacturing business?

Business
1 answer:
Gennadij [26K]3 years ago
6 0

Answer:

Sales Revenue – Cost of Goods Sold = gross profit

Explanation:

In order to determine the income statement components, the following component is shown

Gross profit = Sales revenue - the cost of goods sold

where,

Sales revenue represents the sales of the business organization

And, the cost of goods sold would be

= Opening inventory + Purchase - ending inventory

By deducting the cost of goods sold from the sales revenue the gross profit can arrive

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