The accounting year-end for Flowers Ltd. is 30/06/2020. On 30/06/2020, the accountant managers of Flowers Ltd. provide the following balances for some accounts: revenue from sales is 60,000 and revenue from services is 2,000, the inventory on 30/06/2019 is 12,000. Total purchases for the period amount to 2,000 and the inventory on 30/06/2020 is 3,000. The salary expenses are 5,000 and bill expense is 4,000. The corporate tax rate is 19%. Considering this information, which of the following statements is true?

Select one:

a. On 30/06/2020, Flowers Ltd. will have a gross profit of 51,000 and tax expense equal to 7,980.

b. None of the answers is true.

c. On 30/06/2020, Flowers Ltd. will have an operating profit of 51,000 and tax expense equal to 7,980

d. On 30/06/2020, Flowers Ltd. will have a gross profit of 48,000 and taxation expense equal to 9,690.