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CFA Level 1
Financial Reporting and Analysis

Calculating Gross Profit in Income Statement

Easy Financial Statements Income Statement

In the income statement of a manufacturing company, one of the crucial line items is the gross profit. Gross profit is calculated by subtracting the cost of goods sold (COGS) from total revenues.

Given this context, if a manufacturing company reported total revenues of $800,000 and COGS of $300,000, what is the gross profit?

Hint

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