Question

Challenge Tennis​ & Recreation's operating activities for the year are listed below. Purchases ​$174 comma 800 Operating expenses 62 comma 600 Beginning inventory 27 comma 600 Ending inventory 37 comma 800 Sales revenue 334 comma 000 What is the gross profit for the​ year?

Answer 1

Answer:

The answer is $169,400

Explanation:

Gross profit is a line item under income statement and it is the difference between net sales(revenue) and cost of sales. It is a measure of profitability ( net sales - cost of sales?

Cost of sales = beginning Inventory + purchases - ending Inventory

$27,600 + $174,800 - $37,800

$164,600.

Now, cost of sales is: ( net sales - cost of sales)

$334,000 - $163,800

=$169,400