<table class='tbn'> <tbody> <tr> <td> </td> <td> ₦ </td> <td> </td> <td> ₦ </td> </tr> <tr> <td> Stock 1/1 </td> <td> 20,000 </td> <td> Net Sales </td> <td> 370,000 </td> </tr> <tr> <td> Add purchases </td> <td> 250,000 </td> <td> </td> <td> </td> </tr> <tr> <td> Cost of goods available for sale </td> <td> 270,000 </td> <td> </td> <td> </td> </tr> <tr> <td> Less stock 31/12 </td> <td> 40,000 </td> <td> </td> <td> </td> </tr> <tr> <td> Cost of goods sold </td> <td> 230,000 </td> <td> </td> <td> </td> </tr> <tr> <td> Rent expenses </td> <td> 35,000 </td> <td> </td> <td> </td> </tr> </tbody></table><br/>Find the gross profit
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Correct Answer: Option D
Explanation:
Gross profit is calculated by deducting the cost of goods sold from the net sales.<br/><br/>The formula is:<br/>\(\text{Gross Profit} = \text{Net Sales} - \text{Cost of Goods Sold}\)<br/><br/>From the table:<br/>\(\text{Gross Profit} = 370,000 - 230,000 = ₦140,000\)
Gross profit is calculated by deducting the cost of goods sold from the net sales.<br/><br/>The formula is:<br/>\(\text{Gross Profit} = \text{Net Sales} - \text{Cost of Goods Sold}\)<br/><br/>From the table:<br/>\(\text{Gross Profit} = 370,000 - 230,000 = ₦140,000\)