Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
The gross profit that the company will report in its income statement will be $440,000.
Gross profit = revenue - costs of goods sold
For the Intramural Sports Club, revenue = $740,000.
Finding the cost of goods sold COGS
Inventory turnover = COGS/ average inventory
inventory turnover= 3.0
Average inventory = beginning plus closing inventory /2
in this case, average inventory =$200,000/2
=$100,000
Therefor, 3.0 = COGS/ $100,000
COGS = $100,000 x 3.0
COGS =$300,000
Gross profits= $740,000- $300,000
Gross profit =$440,000
To know more about Average inventory refer:
https://brainly.com/question/28316183
#SPJ4
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.
