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> 8,000.00 </td></tr><tr><td> Purchases </td><td> 16,000.00 </td></tr><tr><td> Overdraft </td><td> 12,000.00 </td></tr><tr><td> Closing stock </td><td> 10,000.00 </td></tr></tbody></table><br/>What is the gross profit?
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Correct Answer: Option D
Explanation:
Gross profit is calculated by subtracting the cost of goods sold from the sales revenue.<br/><br/>First, find the cost of goods sold:<br/>\(\text{Cost of Goods Sold} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock}\)<br/>\(\text{Cost of Goods Sold} = 30,000 + 16,000 - 10,000 = 36,000\)<br/><br/>Next, calculate the gross profit:<br/>\(\text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold}\)<br/>\(\text{Gross Profit} = 50,000 - 36,000 = 14,000\)<br/><br/>Therefore, the gross profit is #14,000.00.
Gross profit is calculated by subtracting the cost of goods sold from the sales revenue.<br/><br/>First, find the cost of goods sold:<br/>\(\text{Cost of Goods Sold} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock}\)<br/>\(\text{Cost of Goods Sold} = 30,000 + 16,000 - 10,000 = 36,000\)<br/><br/>Next, calculate the gross profit:<br/>\(\text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold}\)<br/>\(\text{Gross Profit} = 50,000 - 36,000 = 14,000\)<br/><br/>Therefore, the gross profit is #14,000.00.