Use the information below to answer this question<br/><table class='tbn'><tbody><tr><td> </td><td> # </td></tr><tr><td> Sales </td><td> 50,000.00 </td></tr><tr><td> Debtors </td><td> 10,000.00 </td></tr><tr><td> Cash in hand </td><td> 5,000.00 </td></tr><tr><td> Opening stock </td><td> 30,000.00 </td></tr><tr><td> Creditors </td><td> 8,000 </td></tr></tbody></table><br/>What is the gross profit?
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Correct Answer: Option B
Explanation:
Gross profit is calculated by subtracting the cost of goods sold from sales. Since no purchases or closing stock are given, the opening stock represents the cost of goods sold.<br/><br/>Formula:<br/>\(\text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold}\)<br/>\(\text{Gross Profit} = 50,000 - 30,000 = N20,000\)
Gross profit is calculated by subtracting the cost of goods sold from sales. Since no purchases or closing stock are given, the opening stock represents the cost of goods sold.<br/><br/>Formula:<br/>\(\text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold}\)<br/>\(\text{Gross Profit} = 50,000 - 30,000 = N20,000\)