what is the amount of the gross profit

During the current year, merchandise is sold for $3,15,800 cash and $12,25,000 on account.The cost of the merchandise sold is $8,75,000.What is the amount of the gross profit

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Expert Solution

Gross profit is the income left over after subtracting a business's net sales from its cost of goods sold.

Calculation of gross profit for the company

Gross profit = Net sales - Cost of goods sold

= (Cash Sales + Credit Sales ) - Cost of goods sold

=($3,15,000 + $12,25,000) - $8,75,000

=$6,65,800

Therefore, Gross profit for the company is $6,65,800

balaji rao answered 1 year ago

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