Based on the information from the accounting records of Rob's Retail Store provided above, calculate the value of total profit or loss.Just enter digits (you do not need to enter a $ or comma)[Fill in the blank]

Question

BlackTom AI · Accepted Answer

Net profit is computed on an income statement by starting with net sales, subtracting cost of goods sold to get gross profit, then subtracting operating (and other) expenses. Using the accounting-record line items, follow these steps.

1. Relevant concepts
- Net sales = Sales revenue − Sales returns/allowances.
- Gross profit = Net sales − Cost of goods sold (COGS).
- Net profit (total profit) = Gross profit − Total operating expenses ± Other income/expenses.

2. Step-by-step calculation (using the recorded amounts)
- Sales revenue = 78,200
- Less: Sales returns = 1,200
  Net sales = 78,200 − 1,200 = 77,000

- Less: Cost of goods sold = 47,000
  Gross profit = 77,000 − 47,000 = 30,000

- Operating expenses (sum of individual expense accounts):
  Wages = 9,000
  Rent = 3,600
  Utilities = 1,200
  Insurance = 860
  Total operating expenses = 9,000 + 3,600 + 1,200 + 860 = 14,660

- Net profit (total profit) = Gross profit − Total operating expenses
  Net profit = 30,000 − 14,660 = 15,340

3. Intermediate arithmetic shown
- Net sales: 78,200 − 1,200 = 77,000
- Gross profit: 77,000 − 47,000 = 30,000
- Expenses total: 9,000 + 3,600 + 1,200 + 860 = 14,660
- Net profit: 30,000 − 14,660 = 15,340

4. Why this is correct
All income-statement line items were classified and netted in the standard order (sales → COGS → gross profit → operating expenses → net profit). No other incomes or non-operating items were reported, so the computed net profit is the total profit.

5. Common mistakes to avoid
- Omitting sales returns from net sales, or misclassifying an expense as COGS, would change the result.
- Forgetting to sum all operating expenses would understate expenses and overstate profit.

Final confirmation: the total profit (net profit) is 15340, which matches the provided answer.

Based on the information from the accounting records of Rob's Retail Store provided above, calculate the value of total profit or loss.Just enter digits (you do not need to enter a $ or comma)[Fill in the blank]简答题

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