Question

Tuity Fruity Beverage Company's operating activities for the year below are listed:Purchases $140,000Operating expenses 80,000Beginning inventory 12.000ending inventory 18,000sales revenue 300,000What is the gross profit for the year?(a) $166,000(b) $300,000(c) $80,000(d) $160,000

Answer 1

To calculate the gross profit, subtract the cost of goods sold from the sales revenue.

Step-by-step explanation:

To calculate the gross profit for the year, we need to subtract the cost of goods sold from the sales revenue. The cost of goods sold can be calculated by finding the difference between the beginning inventory and the ending inventory, and then adding the purchases made during the year. In this case, the cost of goods sold would be:

(Beginning Inventory + Purchases) - Ending Inventory = (12,000 + 140,000) - 18,000 = 134,000.

Gross profit is the difference between sales revenue and the cost of goods sold. Therefore, the gross profit for the year would be:

Sales Revenue - Cost of Goods Sold = 300,000 - 134,000 = 166,000.

So, the correct answer is (a) $166,000.

Answer 2

Answer: Option (A) is correct.

Step-by-step explanation:

Given that,

Purchases = $140,000

Operating expenses = $80,000

Beginning inventory = $12,000

Ending inventory = $18,000

Sales revenue = $300,000

Goods available = Beginning inventory + Purchases

= $12,000 + $140,000

= $152,000

Cost of goods sold = Goods available - Ending inventory

= $152,000 - $18,000

= $134,000

Gross profit = Sales revenue - Cost of goods sold

= $300,000 - $134,000

= $166,000