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20 August, 18:58

New Hope, Inc. is a merchandiser of stone ornaments. It sold 15,000 units during the year. The company has provided the following information:Sales Revenue $535,000Purchases (excluding Freight In) 347,000Selling and Administrative Expenses 32,500Freight In 15,200Beginning Merchandise Inventory 43,000Ending Merchandise Inventory 56,500How much is the gross profit for the year?

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  1. 20 August, 21:57
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    Gross profit = $186,300

    Explanation:

    Giving the following information:

    It sold 15,000 units during the year.

    The company has provided the following information:

    Sales Revenue $535,000

    Purchases (excluding Freight In) 347,000

    Selling and Administrative Expenses 32,500

    Freight In 15,200

    Beginning Merchandise Inventory 43,000

    Ending Merchandise Inventory 56,500

    Gross profit = sales - cost of goods sold

    Cost of goods sold = beginning merchandise inventory + purchases - ending merchandise inventory

    Cost of goods sold=43000 + (347000 + 15200) - 56500 = $348,700

    Gross profit = 535000 - 348700 = $186,300
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