Question

CarMax Inc. reports sales of $15,875,118 thousand and cost of sales of $13,691,824 thousand for the year ended February 28, 2017. The gross profit for the year is: A. $2,183,294 thousand B. $1,464,362 thousand C. 86.2% D. 13.8% E. There is not enough information to determine gross profit.

Answer 1

Answer: A. $2,183,294 thousand

Step-by-step explanation:

Gross Profit is calculated by deducting the Cost of Goods sold from the Sales figure.

In this case therefore the Gross Profit would be,

Gross Profit = 15,875,118 - 13,691,824

Gross Profit = $2,183,294 thousand.

$2,183,294 is the Gross Profit for year therefore Option A is correct.