1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aksik [14]
3 years ago
11

Sales revenue $900,000 Cost of goods sold 625,000 Sales discounts 30,000 Sales returns and allowances 15,000 Operating expenses

99,000 Interest revenue 6,500 What is the gross profit?
A. $130,000
B. $120,000
C. $230,000
D. $300,000
Business
2 answers:
faust18 [17]3 years ago
8 0

Answer:

The gross profit is: C.$230,000.

Explanation:

The gross profit is determined by deducting Cost of good sold from Net sales.

Net Sales is net amount of sales in the period, that is, after taken away Sales Discounts, Sales returns and allowances from Gross Sales. So, we have Net Sales calculated as $900,000 - $30,000 - $15,000 = $855,000.

As a result, Gross profit = Net Sales - Cost of good sold = $855,000 - $625,000 = $230,000.

Operating expenses and Interest revenue is irrelevant in Gross profit determination. These expense item and income item will be taken into account when calculating Net Profit.

Thus, the answer is C.$230,000.

allsm [11]3 years ago
4 0

Answer:

Correct answer is C, $230,000

Explanation:

Gross profit is the amount we derived after we deduct cost of goods sold to the net sales revenue.

First, we must compute the Net sales revenue.

Sales Revenue                          $900,000

Less:

   Sales discounts                        $30,000

   Sales returns and allowances <u>$15,000</u>

Net Sales                                   $855,000

Next, We deduct cost of goods sold to net sales revenue in order for us to arrive the gross profit of the period.

Net sales                              $855,000

Less

Cost of goods sold              <u> $625,000</u>

GROSS PROFIT MARGIN     $230,000

You might be interested in
On January 1, 2021, Laramie Inc. acquired land for $6.2 million. Laramie paid $1.2 in cash and signed a 6% note requiring the co
stepladder [879]

Answer:

The amount Laramie should record the purchase of land is <u>$6.2 million</u>.

Explanation:

The costs of a fixed asset refer to the purchase price and other relevant costs which are incurred in order to the location and working condition required to operate the fixed asset in way that it is intended.

The other relevant costs that are added to the purchase price to arrive at the cost of the fixed assets include professional fees, non-refundable taxes or levies, and among others.

If any trade discount or rebate is given, this will be deducted from the purchase price to arrive at the cost.

Any interest required to be paid on the delayed payment in order to reflects the time value of money are not part of the cost of the asset but expensed in the year they are incurred.

From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.

Therefore, the amount Laramie should record the purchase of land is <u>$6.2 million</u>.

6 0
3 years ago
Murphy had no stock transactions in 2018​, so the change in​ stockholders' equity for 2018 was due to net income and dividends.
MaRussiya [10]
Answer: your mom gave you money
5 0
3 years ago
Broker Burns is negotiating a first trust deed loan for buyers. The buyers have signed a contract for a fifteen year loan. What
Harrizon [31]

Answer:

The answer is 2. Ten percent of the principal of the loan

Explanation:

By law, maximum commissions for first trust deed loans are at :

- 5% of the principal for loans less than 2 years or less than 3 years

- 10% of the principal for loans 3years and more.

Second trust deed loans, on the other hand, are stated at 5% for loans up to 2years, 10% for loans between 2-3 years and 15% for loans more than 3 years.

8 0
3 years ago
The following information is available from the current period financial statements:
Galina-37 [17]

Answer:

$166,000

Explanation:

The net cash flow from operating activities using the indirect method is computed below:

Cash flow from Operating activities - Indirect method

Net income $175,000

Adjustment made:

Add : Depreciation expense $28,000

Less: Increase in accounts receivable -$16,000

Less: Decrease in accounts payable -$21,000

Total of Adjustments -$9,000

Net Cash flow from Operating activities $166,000

8 0
3 years ago
In the context of the skills that good managers should possess, which of the following statements is true of managers with a mot
Svet_ta [14]

Answer:

b

Explanation:

bcoz they want to motivate the employees to

6 0
3 years ago
Other questions:
  • Vendors at Municipal Stadium sell their wares at prices that include the city, state, and transit district sales taxes; the tota
    7·1 answer
  • Many firms are finding that high-tech, computerized training has dual benefits. It develops employees who are more effective and
    6·1 answer
  • Behavioral finance and wealth management: how to build optimal portfolios that account for investor biases, 2ndedition
    9·1 answer
  • Which of the following are criteria for determining whether to record an asset as a fixed asset?
    5·1 answer
  • ________________ represent a series of thick and thin vertical linesreadable by computerized optical scanners that represent num
    7·1 answer
  • Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company
    6·1 answer
  • When building a new residential development or mall, a national real estate organization typically does not remove many trees, b
    12·2 answers
  • Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience
    13·1 answer
  • A situation analysis refers to
    9·1 answer
  • A fabric company can produce 11,000 yards of fabric per year currently. The company's goal is to increase the amount of fabric i
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!