Sales = $80,500 cash
Sales = $119,000 cash
Cost of goods sold = $101,500
To find:
Amount of gross profit
Solution:
To calculate the amount of gross profit, initially we have to calculate the total sales.
[tex]\text{Total sales }= \$80,500+\$119,000\rightarrow \$1,99,500[/tex]
([tex]\because[/tex]Adding both the sales (cash+account))
[tex]\text{Gross profit = Total sales - Cost of goods sold}[/tex]
On plugging-in the values in the above formula we get,
[tex]\text{Gross profit }=\$1,99,500 - \$101,500\rightarrow \$98,000[/tex]
Therefore, the amount of gross profit is $98,000.
