How is $750 established as Gross Profit & Cost of Good sold as $6650? a) The gross profit section of the income statement would appear as follows: Sales Revenue $3,400 Less : Cost of goods sold Begining Inventory $5,000 Add : Purchases $3,000 Add : Freight - in $190 Cost of goods available for sale $8,190 Less: Ending inventory $1,540 Cost of goods sold $6,650 Gross profit $750.

1. How is $750 established as Gross Profit & Cost of Good sold as $6650?
a) The gross profit section of the income statement would appear as follows:
Sales Revenue $3,400 Less :
Cost of goods sold Begining Inventory $5,000
Add : Purchases $3,000
Add : Freight - in $190 Cost of goods available for sale $8,190
Less: Ending inventory $1,540
Cost of goods sold $6,650
Gross profit $750