Answer:
Sales Revenue – Cost of Goods Sold = gross profit
Explanation:
In order to determine the income statement components, the following component is shown
Gross profit = Sales revenue - the cost of goods sold
where,
Sales revenue represents the sales of the business organization
And, the cost of goods sold would be
= Opening inventory + Purchase - ending inventory
By deducting the cost of goods sold from the sales revenue the gross profit can arrive
