{"id":205438,"date":"2025-03-24T16:13:46","date_gmt":"2025-03-24T16:13:46","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=205438"},"modified":"2025-03-24T16:13:48","modified_gmt":"2025-03-24T16:13:48","slug":"financial-information-is-presented-below","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/03\/24\/financial-information-is-presented-below\/","title":{"rendered":"Financial information is presented below"},"content":{"rendered":"\n<p>Financial information is presented below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operating expenses: $ 35000<\/li>\n\n\n\n<li>Sales returns and allowances: 9000<\/li>\n\n\n\n<li>Sales discounts: 3000<\/li>\n\n\n\n<li>Sales revenue: 156000<\/li>\n\n\n\n<li>Cost of goods sold: 92000<\/li>\n<\/ul>\n\n\n\n<p>Gross profit would be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>O $52000.<\/li>\n\n\n\n<li>O $55000.<\/li>\n\n\n\n<li>O $61000.<\/li>\n\n\n\n<li>O $64000.<\/li>\n<\/ul>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\">The correct answer and explanation is:<\/mark><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Correct Answer: <strong>$64,000<\/strong><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">Explanation:<\/h4>\n\n\n\n<p>Gross profit is calculated using the formula: Gross&nbsp;Profit=Net&nbsp;Sales\u2212Cost&nbsp;of&nbsp;Goods&nbsp;Sold&nbsp;(COGS)\\text{Gross Profit} = \\text{Net Sales} &#8211; \\text{Cost of Goods Sold (COGS)}<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Calculate Net Sales:<\/strong><br>Net sales are derived from total sales revenue after deducting sales returns, allowances, and sales discounts: Net\u00a0Sales=Sales\u00a0Revenue\u2212Sales\u00a0Returns\u00a0and\u00a0Allowances\u2212Sales\u00a0Discounts\\text{Net Sales} = \\text{Sales Revenue} &#8211; \\text{Sales Returns and Allowances} &#8211; \\text{Sales Discounts} Given data:<ul><li>Sales revenue = <strong>$156,000<\/strong><\/li><li>Sales returns and allowances = <strong>$9,000<\/strong><\/li><li>Sales discounts = <strong>$3,000<\/strong><\/li><\/ul>Net\u00a0Sales=156,000\u22129,000\u22123,000=144,000\\text{Net Sales} = 156,000 &#8211; 9,000 &#8211; 3,000 = 144,000<\/li>\n\n\n\n<li><strong>Calculate Gross Profit:<\/strong><br>Gross profit is found by subtracting the cost of goods sold (COGS) from net sales: Gross\u00a0Profit=Net\u00a0Sales\u2212COGS\\text{Gross Profit} = \\text{Net Sales} &#8211; \\text{COGS} Given:<ul><li>Cost of Goods Sold (COGS) = <strong>$92,000<\/strong><\/li><\/ul>Gross\u00a0Profit=144,000\u221292,000=52,000\\text{Gross Profit} = 144,000 &#8211; 92,000 = 52,000 Oops! That means I miscalculated earlier. The correct answer is actually <strong>$52,000<\/strong>, not $64,000. The closest correct option in your list is <strong>$52,000.<\/strong><\/li>\n<\/ol>\n\n\n\n<h4 class=\"wp-block-heading\">Revised Answer: <strong>$52,00<\/strong>0<\/h4>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/03\/image-1304.png\" alt=\"\" class=\"wp-image-205439\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Financial information is presented below: Gross profit would be: The correct answer and explanation is: Correct Answer: $64,000 Explanation: Gross profit is calculated using the formula: Gross&nbsp;Profit=Net&nbsp;Sales\u2212Cost&nbsp;of&nbsp;Goods&nbsp;Sold&nbsp;(COGS)\\text{Gross Profit} = \\text{Net Sales} &#8211; \\text{Cost of Goods Sold (COGS)} Revised Answer: $52,000<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-205438","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/205438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=205438"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/205438\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=205438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=205438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=205438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}