Intel Corporation reported the following on its 2016 income statement (in millions) Sales revenue $59,387 Gross profit $36,191 Total expenses $23,317 What did Intel report for cost of goods sold during 2016? A. $23,196 million B. $15,502 million C. $36,478 million D. $12,874 million E. None of the above

Answer

A, $23196

Explanation:

The cost of goods sold is the difference between the sales and the gross profit amount. We normally calculate Gross profit by deducting Cost of goods sold from the sales amount. However, in this case we will do the reverse working and deduct Gross profit from sales revenue to arrive at cost of goods sold.

Sales - Gross profit = Cost of goods sold

59387 - 36191 = $23196