LeGrand Corporation Reported the Following Amounts in Its Income Statement

question 93

Multiple Choice

LeGrand Corporation reported the following amounts in its income statement: $$\begin{array} { l r } \text { Sales revenue } & \$ 440,000 \\\text { Advertising expense } & 60,000 \\\text { Interest expense } & 10,000 \\\text { Salaries expense } & 55,000 \\\text { Utilities expense } & 25,000 \\\text { Income tax expense } & 45,000 \\\text { Cost of goods sold } & 180,000\end{array}$$ What was LeGrand's gross profit?

• A) $260,000.
• B) $180,000.
• C) $220,000.
• D) $120,000.

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Definitions:

NAV

Net asset value, calculated as the total value of a fund's assets minus its liabilities, usually applied to mutual funds.

Offering Prices

The price at which new issues of stock, bonds, or other securities are made available for sale to the public for the first time.

Diversification

An investment strategy aimed at reducing risk by allocating investments across various financial instruments, industries, or other categories.

Professional Management

The process of overseeing and handling investment portfolios by experts or specialized firms to achieve specified investment objectives.