Question

operating activities for the year are listed below. Purchases $100,000 Operating expenses $80,000 Beginning inventory $50,000...

operating activities for the year are listed below.

Purchases $100,000
Operating expenses $80,000
Beginning inventory $50,000
Ending inventory $60,000
Sales revenue $500,000

What is the cost of goods sold for the year?

What is the gross profit for the year?

None of the above
$90,000
$330,000
$150,000
$410,000

Homework Answers

Answer #1
1) Cost of goods sold is $ 90,000
Working:
Beginning Inventory $       50,000
Purchase $   1,00,000
Cost of goods available for sale $   1,50,000
Ending inventory $     -60,000
Cost of goods sold $       90,000
2) Gross Profit for the year is $ 4,10,000
Working:
Sales revenue $   5,00,000
Cost of goods available for sale $     -90,000
Gross Profit $   4,10,000
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