Given the Information in the Table Below, What Is the Company's

question 21

Multiple Choice

Given the information in the table below, what is the company's gross profit? $$\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 350,000 \\\hline \text { Accounts receivable } & \$ 280,000 \\\hline \text { Ending inventory } & \$ 230,000 \\\hline \text { Cost of goods sold } & \$ 180,000 \\\hline \text { Sales returns } & \$ 50,000 \\\hline \text { Sales discount } & \$ 20,000 \\\hline\end{array}$$

• A) $280,000.
• B) $170,000.
• C) $50,000.
• D) $100,000.

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Definitions:

Budgeted Cash Receipts

An estimate of all cash inflows a company expects to receive during a particular period based on expected sales or other income sources.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of materials and labor but not distribution or sales costs.