Answer:
Sales Revenue $39,300,000
Cost of Goods Sold ($20385000)
Gross Profit $18915000
Selling, General and Administrative Expenses ($7,225,000)
Net Income $11690000
Explanation:
Sales Revenue $39,300,000
Cost of Goods Sold ($20385000)
Gross Profit $18915000
Selling, General and Administrative Expenses ($7,225,000)
Net Income $11690000
Cost of Goods Sold is calculated as (Opening Inventory + Purchases – Closing Inventory) ($3,100,000 + $21,400,000 - $4,115,000).
Sales Revenue is deducted from Cost of Goods Sold to find Gross Profit after which Selling, General and Administrative Expenses are deducted which gives us Net Income of $11690000.
