The Willie Company has provided the following information: • Operating expense

Question

The Willie Company has provided the following information: • Operating expenses were $365,000; • Income from operations was $250,000; • Net sales were $1,500,000; • Interest expense was $77,000; • Discontinued operations loss net of tax was $85,000; • Income tax expense was $51,900. What was Willie's gross profit? $885,000 $785,800 $666,900 $615,000

$885,000 $785,800 $666,900 $615,000

The Willie Company has provided the following information: • Operating expenses were $365,000; • Income from operations was $250,000; • Net sales were $1,500,000; • Interest expense was $77,000; • Discontinued operations loss net of tax was $85,000; • Income tax expense was $51,900. What was Willie's gross profit?

Explanation / Answer

Hi,

Please find the answer as follows:

Gross Profit = Income from Operations + Operating Expenses = 250000 + 365000 = 615000

Option D (615000) is correct.

Thanks.

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