Question

A business has gross sales of $300,000, sales returns of $5,000, cost of goods sold of $40,000, Operating expenses of $80,000, taxes of 30%. what is the pre tax profit.

Answer 1

Answer: 175,000

Explanation:

Net Profit before Taxes = Gross Sales - Sales Returns - Cost of Goods Sold - Operating Expenses

= $300,000 - $5,000 - $40,000 - $80,000 = $175,000

Pre-Tax Profit = Net Profit before Taxes = $175,000.