1.Our company is a manufacturer and has the following data available for the current year:

• sales, $550,000;
• cost of goods manufactured, $250,000;
• finished goods beginning inventory, $20,000; and
• finished goods ending inventory, $30,000.

What is the amount reported on the income statement for gross profit?

a. $260,000

b. $240,000

c. $290,000

d.$310,000

2. Our company is a manufacturer and has the following data available for the current year:

• sales, $550,000;
• sales discounts, $20,000;
• sales returns and allowances, $15,000; and
• cost of goods sold, $200,000.

What is the amount reported on the income statement for gross profit?

a. $530,000

b. $515,000

c. $330,000

d. $315,000