Question

LeGrand Corporation reported the following amounts in its income statement: Sales revenue $ 440,000 Advertising expense 60,000 Interest expense 10,000 Salaries expense 55,000 Utilities expense 25,000 Income tax expense 45,000 Cost of goods sold 180,000 What was LeGrand's gross profit?

Answer 1

Gross profit= $260,000

Step-by-step explanation:

Giving the following information:

Sales revenue $ 440,000

Cost of goods sold 180,000

The gross profit is the result of deducting the cost of goods sold from sales revenue. It will appear in the income statement under absorption costing.

Gross profit= sales revenue - COGS

Gross profit= 440,000 - 180,000= $260,000