Question

New Hope, Inc. is a merchandiser of stone ornaments. It sold 15,000 units during the year. The company has provided the following information:Sales Revenue $535,000Purchases (excluding Freight In) 347,000Selling and Administrative Expenses 32,500Freight In 15,200Beginning Merchandise Inventory 43,000Ending Merchandise Inventory 56,500How much is the gross profit for the year?

Answer 1

Gross profit= $186,300

Step-by-step explanation:

Giving the following information:

It sold 15,000 units during the year.

The company has provided the following information:

Sales Revenue $535,000

Purchases (excluding Freight In) 347,000

Selling and Administrative Expenses 32,500

Freight In 15,200

Beginning Merchandise Inventory 43,000

Ending Merchandise Inventory 56,500

Gross profit= sales - cost of goods sold

Cost of goods sold= beginning merchandise inventory + purchases - ending merchandise inventory

Cost of goods sold=43000 + (347000 + 15200) - 56500= $348,700

Gross profit= 535000 - 348700= $186,300