Question

Refer to the following trial balance. ​ Debit Credit Cash $19,000 ​ Accounts Receivable 40,000 ​ Merchandise Inventory 62,000 ​ Supplies 17,000 ​ Land 310,000 ​ Accounts Payable ​ $3,000 Notes Payable ​ 25,000 Common Stock ​ 354,000 Retained Earnings ​ 21,000 Dividends 6,000 ​ Sales Revenue ​ 433,000 Cost of Goods Sold 240,000 ​ Salaries Expense 15,000 ​ Utilities Expense 67,000 ​ Rent Expense 55,000 ​ Interest Expense 5,000 ________ Totals $836,000 $836,000 How much is the gross profit? Select one: A. $45,000 B. $193,000 C. $56,000 D. $51,000

Answer 1

Answer:

The answer is B.

Explanation:

Gross profit is the difference between a company's net sales or total revenue and cost of sales or cost of goods sales.

Sales revenue is $433,000

Cost of Goods Sold is $240,000 ​

Remember that Gross profit is Sales revenue - cost of goods sold.

Sales revenue----------------------------$433,000

Minus: Cost of Goods Sold----------$240,000

Gross profit--------------------------------$193,000