Question

Last month a company had net sales revenues of $10,000; Cost of goods sold of $4,000; other operating expenses of $3,000; non-operating expenses of $1,000; no non-operating revenues, gains or losses; and income taxes of $500. The gross profit was

Gross Profit =
10,000
- 4,000
------------
= $6,000
- Ignore everything except for Sales Revenue (Net Sales) and Cost of goods sold

Answer 1

The gross profit was $6,000

Step-by-step explanation:

In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

The gross income is the income in which the cost of goods sold is deducted from the sales amount.

In mathematically,

Gross income = Sales - the cost of goods sold

= $10,000 - $4,000

= $6,000

Ignore other things.