Sarah’s Baking Supplies had sales of $2,400,000 and cost of goods sold of $1,700,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,690,000. What was the firm’s operating profit?
Sales…………………………………………$2,400,000
Cost of goods sold…………………………. $1,700,000
Gross profit…………………………………. $700,000
Selling and administrative expenses =10% ×$2,400,000=$240,000
Depreciation amount =6% ×$4,690,000=$281,400
Operating profit =?

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