Question

A company reports the following information for June: Sales revenue $ 104,000 Income tax expense $ 11,000 Operating expenses 22,000 Cost of goods sold 65,000 Deferred revenues 15,000 Nonoperating revenues 12,000 What is the company's gross profit for June?

Answer 1

Answer:

Gross profit    $39,000

Explanation:

X company

Income statement ( parochial)

For the year ended, June 30 20YY

Sales revenue                                                       $104,000

Less: cost of goods sold                                       $65,000

Gross profit                                                            $39,000

In that case, we do not use Income tax expense, Operating expenses, Deferred revenues, Non-operating revenues because those will be needed when we will calculate the net income.