Question

Wildwood, an outdoors clothing store, reports the following information for June: Sales revenue $104,000 Income tax expense $11,000 Operating expenses 22,000 Cost of goods sold 65,000 Deferred revenues $15,000 Nonoperating revenues 12,000 What is Wildwood's gross profit for June?

Answer 1

The gross profit is $39,000

Step-by-step explanation:

The computation of the gross profit is shown below:

= Sales revenue - cost of goods sold

= $104,000 - $65,000

= $39,000

The gross profit always be computed by subtracting the cost of goods sold from the sales revenue. Therefore, we apply this formula to find out the gross profit.

All these items which is shown above will record in the income statement.