00:01
In the given question, we need to find out cost of goods sold and operating expenses.
00:06
So first of all, the cost of goods sold's value is going to be the difference between sales and the cross profit.
00:19
So the value of sales is given to be $890 ,000 and the value of gross profit is $465 ,000.
00:29
Therefore, the cost of goods sold comes to 425 ,000.
00:35
This is the cost of goods sold.
00:37
Now, we will be calculating the value of operating expenses.
00:48
So this is going to be for this.
00:50
We will be preparing an extract of income statement.
00:57
So in this, we will be starting with the value of sales.
01:01
So the sales given in the question is of 890 ,000.
01:06
Now from sales when we subtract the cost of goods sold then we arrive at gross profit so cost of goods sold we have calculated to be 425 ,000 so the balance remains 465 ,000 and this will be the gross profit now from gross profit if we are going to subtract the operating expenses then we will arrive at the net income or the net loss...