Given the information in the table below, what is the company's gross profit?

Sales revenue $ 350,000

Accounts receivable $ 280,000

Ending inventory $ 230,000

Cost of goods sold $ 180,000

Sales returns $ 50,000

Sales discounts $ 20,000

A) $280,000.

B) $170,000.

C) $50,000.

D) $100,000.

Answer: $100,000.

Which of the following items may be classified as nonoperating revenues and expenses?

A) Interest expense.

B) Loss on the sale of equipment.

C) Interest revenue.

D) All of the other answers are classified as nonoperating revenues and expenses.

Answer: All of the other answers are classified as nonoperating revenues and expenses.

The type of income statement that reports a series of subtotals such as gross profit, operating income, and income before taxes is a ________ income statement.

A) Single-step.

B) Subtotaled.

C) Multiple-step.

D) Classified.

Answer: Multiple-step.