Question

Gracie Co. has the following information:

Net Sales: $22,000
COGS: $12,000
Operating Expenses: $3,000
Interest Revenue: $800
Unearned Revenue: $1,100
Accounts Payable: $500
Accounts Receivable: $4,000
Calculate Gross Profit for Gracie Co.?

Answer 1

The Gross Profit for Gracie Co. is calculated by subtracting the Cost of Goods Sold (COGS) from the Net Sales, resulting in a Gross Profit of $10,000.

Step-by-step explanation:

Calculating Gross Profit

To calculate the Gross Profit for Gracie Co., we will use the following formula:

Gross Profit = Net Sales - Cost of Goods Sold (COGS).

Using the provided information:

Net Sales: $22,000

COGS: $12,000

The calculation will be:

Gross Profit = $22,000 - $12,000 = $10,000.

Therefore, the Gross Profit for Gracie Co. is $10,000.