A Company Had Sales Revenue of $1,000,000 Last Year

Multiple Choice

A company had sales revenue of $1,000,000 last year. Its operating expenses were $100,000 and its income tax expense was $10,000. Additionally, the company had $20,000 in sales returns and cost of goods sold of $500,000. What was its gross profit?

A) $400,000
B) $500,000
C) $380,000
D) $370,000
E) $480,000