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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company reported the following amounts in its income statement:
Sales revenue
Advertising expense
Interest expense
Salaries expense
$ 440,000
60,000
10,000
55,000
Utilities expense
25,000
Income tax expense
45,000
Cost of goods sold
180,000
What is gross profit?
Multiple Choice
$120,000
O
$220,000
$260,000

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am. 05.