(a) Net Sales = $ Gross Sales - $ Customer Returns= $583,260 - ($583,260 x 8.65%)= $583,260 - $50,452= $532,808(b) Cost of Merchandise Sold % = Net Sales% - Gross Margin%= 100.00% - 51.65%= 48.35%(c) Cost of Merchandise Sold = $ Net Sales x Cost of Merchandise Sold%= $532,808 x 48.35%= $257,613(d) Gross Margin = $ Net Sales - $ Cost of Merchandise Sold= $532,808 - $257,613= $275,195(e) Profit = $ Gross Margin - $ Expenses= $275,195 - $251,870= $23,325Corresponding Percent:() Expense % = $ Expenses + $ Net Sales= $251,870 + $532,808= 47,27%(g) Profit % = $ Profit + $ Net Sales= $23,325 + $532,808= 4.38%Practice Problems • Exercise 3.21. Determine net sales if gross sales were $98,656 and customer retuns were 4.8%.2. Net sales were $126,810; customer returns totaled $6,080. Calculate customer returns percent.3. Gross sales were $236,438; net sales were $224,176. Determine customer return percent.4. Last week, Ms. Smith had gross sales of $986.35. Her customer returns totaled $112. Calculate theof sales returned.Back to page 8

“Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Answered: 1. Determine net sales if gross sales…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

If Swifty Corporation has net sales of $515000 and cost of goods sold of $365000, Swifty gross profit rate is 71%. 41%. 100%. 29%.
Efficiency ratio: Bummel and Strand Corp. has a gross profit margin of 33.7 percent, Sales of $47,112,365, and inventories of $14,595,435. What is its inventory turnover ratio?
Computing Net Sales Based on the following information, compute net sales. Gross sales $3,780 Sales returns and allowances 410 Sales discounts 80 Net sales:
For the year, Simmons Incorporated reports net sales of $100,000, cost of goods sold of $80,000, and an average inventory balance of $40,000. What is Simmons’ gross profit ratio? a. 20%.b. 25%.c. 40%.d. 50%.
Safety Company had $45,000 in gross sales, $1,200 in sales discounts, $10,000 in cost of goods sold, $5,500 in selling expenses, $600 in sales returns and allowances, and $7,200 in general expenses. What is Safety Company net sales? a.$35,000 b.$43,200 c.$20,500 d.$33,200
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company. Atlanta* $ 32,400 (15,500) 16,900 Boston* $ 87,500 (64,030) 23,470 Net sales Cost of goods sold Gross margin Less: Operating expenses Selling and administrative expenses Net income *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. a-2. Ascertain which of the companies is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $17,800 and $20,200, respectively, which company is in the more profitable business? Complete this question by entering your answers in the tabs below. Req A1 Req A2 (12,740) (19,026) $ 4,160 $ 4,444 Req B Gross margin percentages Return-on-sales ratios Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) Atlanta % % Boston
In a common-sized income statement, 100% is the a. net cost of goods sold b. gross profit c. sales d. net income
What is the return on assets of The Big Show Inc. that has sales of $428,300, total assets of $389,100, and a profit margin of 7.2 percent? Multiple Choice 7.01 percent 6.30 percent 6.54 percent 7.93 percent 6.83 percent
Jester Corporation's most recent income statement appears below: Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Multiple Choice O The beginning balance of total assets was $190,000 and the ending balance was $187,200. The return on total assets is closest to: O 23.9% Income Statement 22.3% 16.7% 31.8% $ 250,000 145,000 105,000 45,000 60,000 15,000 45,000 13,500 $ 31,500
Calculate the gross and net profits (in $) and the two profit margins (as %s) for the given company. (Round profit margins to the nearest tenth of a percent.) Company Net Sales Cost ofGoods Sold GrossProfit OperatingExpenses Net Profit Gross ProfitMargin (%) Net ProfitMargin (%) an optometry store $327,735 $201,655 $ $83,921 $ % %
Monty Corp. reported net sales $610,000, cost of goods sold $366,000, operating expenses $151,000, and net income S70,150. Calculate the profit margin and gross profit rate. (Round Profit margin answer to 2 decimal places, e.g.
Refer to the following selected company information to determine the Year 1 and Year 2 common size percentages for operating expenses using Net sales as the base. Year 1 Year 2 Net sales $397,800 $489,400 Cost of goods sold 134,660 210,400 Operating expenses 73,910 76,690 Net earnings 27,490 38,740 Answer: A. 15.3% for Year 1 and 27.3% for Year 2 B. 33.9% for Year 1 and 43% for Year 2 C. 18.6% for Year 1 and 15.7% for Year 2 D. 20.4% for Year 1 and 19.3% for Year 2 E. 100% for Year 1 and 123% for Year 2

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

1. Determine net sales if gross sales were $98,656 and customer returns were 4.8%. 2. Net sales were $126,810; customer returns totaled $6,080. Calculate customer returns percent. 3. Gross sales were $236,438; net sales were $224,176. Determine customer return percent.