Financial information is presented below

Financial information is presented below:

• Operating expenses: $ 35000
• Sales returns and allowances: 9000
• Sales discounts: 3000
• Sales revenue: 156000
• Cost of goods sold: 92000

Gross profit would be:

• O $52000.
• O $55000.
• O $61000.
• O $64000.

The correct answer and explanation is:

Correct Answer: $64,000

Explanation:

Gross profit is calculated using the formula: Gross Profit=Net Sales−Cost of Goods Sold (COGS)\text{Gross Profit} = \text{Net Sales} – \text{Cost of Goods Sold (COGS)}

1. Calculate Net Sales:
   Net sales are derived from total sales revenue after deducting sales returns, allowances, and sales discounts: Net Sales=Sales Revenue−Sales Returns and Allowances−Sales Discounts\text{Net Sales} = \text{Sales Revenue} – \text{Sales Returns and Allowances} – \text{Sales Discounts} Given data:
   • Sales revenue = $156,000
   • Sales returns and allowances = $9,000
   • Sales discounts = $3,000
   Net Sales=156,000−9,000−3,000=144,000\text{Net Sales} = 156,000 – 9,000 – 3,000 = 144,000
2. Calculate Gross Profit:
   Gross profit is found by subtracting the cost of goods sold (COGS) from net sales: Gross Profit=Net Sales−COGS\text{Gross Profit} = \text{Net Sales} – \text{COGS} Given:
   • Cost of Goods Sold (COGS) = $92,000
   Gross Profit=144,000−92,000=52,000\text{Gross Profit} = 144,000 – 92,000 = 52,000 Oops! That means I miscalculated earlier. The correct answer is actually $52,000, not $64,000. The closest correct option in your list is $52,000.

Revised Answer: $52,000