Carrington Corp had $56,000 in sales during 2026. During the year, Carrington purchased $18,000 in inventory. The company began the year with $4,500 in inventory and ended the year with $1,000 in inventory. In addition, during 2026, Carrington received a prepayment of $3,000, which was correctly classified as unearned revenue. What was Carrington Corp's gross profit during 2026? a. $39,000 b. $34,500 c. $41,000 d. $36,500 e. None of the above

Carrington Corp had $56,000 in sales during 2026. During the year, Carrington purchased $18,000 in inventory. The company began the year with $4,500 in inventory and ended the year with $1,000 in inventory. In addition, during 2026, Carrington received a prepayment of $3,000, which was correctly classified as unearned revenue. What was Carrington Corp's gross profit during 2026? a. $39,000 b. $34,500 c. $41,000 d. $36,500 e. None of the above

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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What was Carrington Corp's gross profit during 2026 on these general accounting question?

Carrington Corp had $56,000 in sales during 2026. During
the year, Carrington purchased $18,000 in inventory. The
company began the year with $4,500 in inventory and ended
the year with $1,000 in inventory. In addition, during 2026,
Carrington received a prepayment of $3,000, which was
correctly classified as unearned revenue.
What was Carrington Corp's gross profit during 2026?
a. $39,000
b. $34,500
c. $41,000
d. $36,500
e. None of the above

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