Li retailing reports the following items for the current year: Sales $2 million - Cost of goods sold - $1.2 million Depreciation expense - $140,000 Administrative expense - $170,000 Interest expense - $40,000 Marketing expenses - $60,000 Taxes $20,000 Li's gross profit is equal to A) $410,000. B) $800,000. C) $490,000. D) $430,000.

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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Li retailing reports the following items for the current year:
Sales $2 million
-
Cost of goods sold - $1.2 million
Depreciation expense - $140,000
Administrative expense - $170,000
Interest expense - $40,000
Marketing expenses - $60,000
Taxes $20,000
Li's gross profit is equal to
A) $410,000.
B) $800,000.
C) $490,000.
D) $430,000.
Transcribed Image Text:Li retailing reports the following items for the current year: Sales $2 million - Cost of goods sold - $1.2 million Depreciation expense - $140,000 Administrative expense - $170,000 Interest expense - $40,000 Marketing expenses - $60,000 Taxes $20,000 Li's gross profit is equal to A) $410,000. B) $800,000. C) $490,000. D) $430,000.
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