₦ ₦ Stock 1/1 20,000 Net sales 370,000 Add purchases 250,000 Cost of goods available for sale 270,000 Less stock 31/12 40,000 Cost of goods sold 230,000 Ren...
Question 1 Report
| ₦ | ₦ | ||
| Stock 1/1 | 20,000 | Net sales | 370,000 |
| Add purchases | 250,000 | ||
| Cost of goods available for sale | 270,000 | ||
| Less stock 31/12 | 40,000 | ||
| Cost of goods sold | 230,000 | ||
| Rent expenses | 35,000 |
Use the information above to answer the question:
Find the gross profit.
Answer Details
To find the gross profit, we need to subtract the cost of goods sold from the net sales.
From the information provided, we can see that the net sales is ₦370,000 and the cost of goods sold is ₦230,000.
Therefore, the gross profit can be calculated as:
Gross profit = Net sales - Cost of goods sold
Gross profit = ₦370,000 - ₦230,000
Gross profit = ₦140,000
Therefore, the gross profit is ₦140,000.
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