Sales Revenue Is $367,810 While Sales Returns and Allowances and Sales

question 103

Multiple Choice

Sales revenue is $367,810 while sales returns and allowances and sales discounts total $24,180.The cost of goods sold is $216,490,operating and other expenses are $28,500,and the company pays $31,640 in income tax.Which of the following is true?

• A)Net sales is $127,140 and gross profit is $98,640.
• B)Net sales is $67,000 and gross profit is $98,640.
• C)Net sales is $343,630 and gross profit is $127,140.
• D)Net sales is $367,810 and gross profit is $67,000.

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Definitions:

Net Worth

The total value of an individual's or entity's assets minus liabilities, indicating financial health or position.

Stewardship

The responsible overseeing and protection of something considered worth caring for and preserving, often related to environmental and natural resources.

Technological-Economic Growth

The expansion of economic activity and advancements in society driven by technological innovation and increased production efficiency.

Market-Based Competition

The rivalry among businesses to attract customers and achieve higher sales and profits within a market economy.