Asked by Maria Arias on Jun 28, 2024
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Chen Company's financial information is presented below. Sales Revenue $ ???? Cost of Goods Sold 510,000 Sales Returns and Allowances 40,000 Gross Profit ???? Net Sales 850,000\begin{array} { l r l r } \text { Sales Revenue } &\$ \text { ???? } & \text { Cost of Goods Sold } & 510,000 \\\text { Sales Returns and Allowances } & 40,000 & \text { Gross Profit } & ? ? ? ? \\\text { Net Sales } & 850,000 & &\end{array} Sales Revenue Sales Returns and Allowances Net Sales $ ???? 40,000850,000 Cost of Goods Sold Gross Profit 510,000???? The missing amounts above are: Sales Revenue ‾ Gross Profit ‾\begin{array}{lrr} \underline{ \text { Sales Revenue } }& \underline{\text { Gross Profit } }\\\end{array} Sales Revenue Gross Profit
A) $890,000$340,000\begin{array}{ll} \$ 890,000 &&&& \$ 340,000 \\\end{array}$890,000$340,000
B) $810,000$340,000\begin{array}{ll} \$ 810,000 &&&& \$ 340,000 \\\end{array}$810,000$340,000
C) $890,000$300,000\begin{array}{ll} \$ 890,000 &&&& \$ 300,000 \\\end{array}$890,000$300,000
D) $810,000$380,000\begin{array}{ll}\$ 810,000 &&&& \$ 380,000\end{array}$810,000$380,000
Gross Profit
The financial measure calculated by subtracting the cost of goods sold from revenue, representing the profit a company makes after deducting the costs associated with making and selling its products.
Net Sales
The amount of sales revenue left after deducting sales returns, allowances, and discounts from gross sales.
- Gain an understanding of the significance and formula for calculating gross profit on the income statement.
Verified Answer
VH
Learning Objectives
- Gain an understanding of the significance and formula for calculating gross profit on the income statement.