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Sales Revenue: 460,000. Cost of goods sold 300,000. Operating expenses 85,000. Sales discounts...

Question:

Sales Revenue: 460,000.

Cost of goods sold 300,000.

Operating expenses 85,000.

Sales discounts 20,000.

Sales returns and allowances: 15,000.

Interest revenue: 5,000.

1) What is net sales revenue?

2) Assume net sales revenue is 450,000. What is gross profit?

Gross Profit:

In the parlance of economics, the income statement for a firm shows the net earnings generated during a given period. It may be prepared by using a single-step method or multi-step method. The multi-step method shows various levels of earnings such as gross profit , operating profit and net income.

Answer and Explanation: 1

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Answer to 1)

The net sales revenue is given by:

{eq}\begin{align*} &= \text{Sales revenue - sales returns and allowances - sales discounts} \\[0.3...

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What Is Gross Profit? - Definition, Formula & Calculation

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Chapter 9 / Lesson 7
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Understand the meaning of gross profit in accounting. Discover the formula for calculating gross profit and explore some examples of gross profit calculation.


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