Prather Inc. has sales of $100,000, sales returns of $5,000, cost of goods sold of $60,000, and selling expenses of $3,000. Calculate gross profit.

Question

Kamila Braun

Business

23 April, 18:37

Prather Inc. has sales of $100,000, sales returns of $5,000, cost of goods sold of $60,000, and selling expenses of $3,000. Calculate gross profit.

+2

Answers (1)

Know the Answer?

Belinda Sellers · Answer 1

The answer is $35000

Explanation:

Gross profit is net sales minus the cost of goods sold. It reveals the amount that a business earns from the sale of its goods and services before the application of additional selling and administrative expenses.

Gross profit = sales - sales returns - cost of goods sold

Gross profit = $100000 - $5000 - $60000