Question

The Callie Company has provided the following information: Operating expenses were $237,000; Cost of goods sold was $364,000; Net sales were $870,000; Interest expense was $40,000; Gain on sale of a building was $77,000; Income tax expense was $122,400. What was Callie's gross profit

Answer 1

Answer:

$506,000

Explanation:

The gross profit of a company is the balance left after the deduction of costs associated with producing or selling of the company's goods or cost associated with providing services from the net revenue

The gross profit is simply calculated as

= Net revenue - Cost of goods sold

= $870,000 - $364,000

= $506,000

Therefore, Callie's gross profit is $506,000