Question

Tuity Fruity Beverage Company's operating activities for the year are listed below.Purchases $140,100Operating expenses 80,400Beginning inventory 13,000Ending inventory 19,000Sales revenue 300,400What is the gross profit for the year?A) $160,300B) $300,400C) $80,400D) $166,300

Answer 1

Answer:

D) $166,300

Explanation:

The computation of gross profit is shown below:

= Sales - cost of good sold

where,

Sales is $300,400

And, the cost of goods sod equals to

= Opening inventory + purchase - ending inventory

= $13,000 + $140,100 - $19,000

= $134,100

Now put these values to the above formula

So, the answer would be equal to

= $300,400 - $134,100

= $166,300