Question

Tully corporation reported the following on its annual income statement (in millions):

sales revenue $148,468
gross profit 90,478
total expenses 58,293
what did tully report for cost of goods sold during the year?
Select one:
a. $57,990 million
b. $32,185 million
c. None of the these are correct.
d. $38,755 million
e. $116,283 million

Answer 1

Tully Corporation's Cost of Goods Sold can be determined by subtracting the Gross Profit from Sales Revenue, which results in $57,990 million, corresponding to option (a) in the given question.

Step-by-step explanation:

To calculate the Cost of Goods Sold (COGS) for Tully Corporation, we can use the following information provided in the income statement: Sales Revenue and Gross Profit. The formula to calculate COGS is: Sales Revenue - Gross Profit. Based on the figures given, Tully Corporation had Sales Revenue of $148,468 million and a Gross Profit of $90,478 million. The calculation for COGS would therefore be $148,468 million - $90,478 million = $57,990 million.

The Cost of Goods Sold reflects the direct costs attributable to the production of the goods sold by a company. This number is important to investors and managers as it directly impacts the gross profit and profitability of the company. Having calculated the COGS, we can now identify the correct answer from the options provided.