Question

The following information pertains to Cobb Corporation's financial results for the past year.

Net sales $135,000
Cost of goods sold 48,000
Other expenses 37,000
Net income 50,000

Calculate Cobb's Gross profit.

Answer 1

Cobb's Gross profit is $87,000

Step-by-step explanation:

Gross profit is calculated by subtracting Cost of goods sold from the net sales value. Cost of Goods sold is the cost of manufacturing or purchasing of the product which is being sold.

Net Sales $135,000

Cost of Goods Sold $48,000

Gross profit $87,000