A company reported the following information for the month of October: • Sales: $78,600 • Sales discounts: $420 Sales returns and allowances: $3,150 • Cost of goods sold: $45,800 Calculate this company's gross margin ratio.

A company reported the following information for the month of October: • Sales: $78,600 • Sales discounts: $420 Sales returns and allowances: $3,150 • Cost of goods sold: $45,800 Calculate this company's gross margin ratio.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Related questions

Q: What are the key differences between cash accounting and accrual accounting?

A: Timing of Revenue and Expenses:Cash Accounting: Records transactions when cash is received or…

Q: Petron Pet Supplies sells on terms of 3/10, net 60. What is the effective annual cost of trade…

A: To find the effective annual cost of trade credit, we use the formula: Effective Annual Rate…

Q: What is the correct answer accounting

A: Step 1: Definition of Net SalesNet Sales refers to the total revenue earned from sales of goods or…

Q: ??

A: Given Information: Total cost per unit at 100,000 units = $50.00Variable cost per unit = $20.00New…

Q: Accounting solution need

A: Step 1: Definition of Absorption CostingAbsorption Costing: This is a costing method that includes…

Q: Discuss the implications!

A: Explanations:1. Materials Quantity Variance CalculationMaterials Quantity Variance (MQV) is…

Q: Accounting 88

A: Concept of EBIT (Earnings Before Interest and Taxes)EBIT stands for Earnings Before Interest and…

Q: Calculate initial cost ...

A: To calculate the initial cost of the equipment, we use the present value of annuity…

Q: Question 5.2

A: Concept of Gross Profit MethodThe gross profit method is a technique used to estimate ending…

Q: Help with accounting question and solution

A: Step 1: Definition of Cash Receipts from Sales on AccountCash Receipts from Sales on Account refers…

Q: What would the price?

A: To find the price, we'll follow these steps:Calculate Fixed Costs:Given the total cost per unit at…

Q: Problem related general Accounting

A: Mark up based on selling price = ((Selling price - Cost) / Selling price) x 100%Mark up based on…

Q: Can you help me with this question general accounting?

A: Let x be the sales units required to achieve net income of 12% of sales. Compute target…

Q: Petron Pet Supplies sells on terms of 3/10, net 60. What is the effective annual cost of trade…

A: To calculate the effective annual cost of trade credit, we use the formula: \text{Effective Cost} =…

Q: Rolex Industries uses a predetermined overhead rate based on direct labor hours. The company applies…

A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is the rate a company…

Q: Sterling Industrial estimated the following annual costs: • Expected annual direct labor hours:…

A: Step 1: Definition of Overhead Allocation Rate (Extended)The Overhead Allocation Rate is a financial…

Q: ???!!

A: Explanation of Absorption Costing:Absorption costing is a method of costing that includes all…

Q: Please give me answer general accounting question

A: Step 1: Definition of RatiosCurrent Ratio: Measures the company's ability to pay its short-term…

Q: General accounting question

A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a financial ratio that…

Q: General accounting questions answer

A: To determine the interest rate on the promissory note, we use the simple interest formula:I = P × r…

Q: need this question answer General accounting

A: Step 1: Define Net Income Calculation (Reverse Calculation Method)To find the net income of the…

Q: Provide answer

A: Step 1: Definition of Raw Materials Transferred to ProductionRaw Materials Transferred to Production…

Q: Accounting 88

A: Compute the variable overhead per unit.Variable overhead per unit = 84,000 / 12,000 unitsVariable…

Q: ?? Financial accounting

A: To calculate the dividend yield, use the formula:Dividend Yield=(Annual Dividends per Share/Market…

Q: Get correct answer general accounting question

A: Return on Equity (ROE) measures a company's profitability in relation to its shareholders' equity.…

Q: Alpha Corp. produces and sells a single product. The company's contribution format income statement…

A: Step 1: Definition of Contribution MarginContribution margin is the amount remaining from sales…

Q: How much gross profit was realized from this sale on accounting question?

A: Step 1: Definition of Gross ProfitGross Profit is the difference between the revenue generated from…

Q: Determine the dollar amount of the fiscal year 2020 cost of goods sold on these financial accounting…

A: Step 1: Definition of Cost of Goods Sold (COGS)The Cost of Goods Sold (COGS) is the total cost…

Q: SUBJECT: FINANCIAL ACCOUNTING 2

A: Explanation of Sales:Sales refer to the total revenue a company earns by selling its goods or…

Q: Accounting problem

A: Step 1: DefinitionsConcept of Accrual Basis AccountingAccrual basis accounting recognizes revenues…

Q: Find out

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) represents the direct costs…

Q: Please help me. General accounting

A: Step 1: Definition of the Accounting EquationThe accounting equation is the fundamental principle of…

Q: help me to solve this question

A: Step 1: Definition of Accounting EquationThe Accounting Equation is the foundation of all…

Q: Answer? Financial accounting question

A: Step 1: Define Basis PointsBasis Points: A basis point is a unit of measure used to describe the…

Q: What is the actual total direct materials cost for the current period

A: Concept of Standard Direct Materials Cost:Standard direct materials cost is the predetermined or…

Q: D-Mart reported a net income of $19,500for the previous year. At the beginning of the year, the…

A: Step 1: DefinitionsExplanation of Net Income:Net income is the total profit a company earns after…

Q: What is the accounting equation, and why is it important?

A: The accounting equation is:Assets = Liabilities + EquityImportance:Foundation of Accounting - Forms…

Q: Given the solution and accounting question

A: Step 1: Definition of Total Manufacturing CostsTotal manufacturing costs refer to the total…

Q: Need

A: Step 1: Definition of Gross Margin RatioGross Margin Ratio measures the percentage of revenue that…

Q: Given answer General accounting

A: Step 1: Define Net IncomeNet Income, also known as net profit, net earnings, or the bottom line, is…

Q: SUBJECT FINANCIAL ACCOUNTING

A: Explanation of Net Income:Net income is the company's total profit after all expenses, including…

Q: What would be the net sales reported on elite tools 2023 income statement for this financial…

A: Step 1: Definition of Net SalesNet sales is calculated as total sales minus sales returns and…

Q: A firm has a total debt ratio of 50%, total debt of $500,000, and net income of $65,000. What is the…

A: To calculate the firm's Return on Equity (ROE), we need to follow these steps: Determine Total…

Q: A company’s ability to pay its short-term obligations is assessed using which financial ratio?a)…

A: The Current Ratio is a key financial metric used to assess a company's ability to meet its…

Q: Income from operations for Division X is $300,000, total service department charges are $500,000,…

A: Step 1: Definition of RevenuesRevenues represent the total amount earned by a business from its…

Q: A wealthy investor is considering purchasing a perpetual annuity that pays $1.8 million per year…

A: The present value (PV) of a perpetual annuity is calculated using the formula: PV=rC where:C =…

Q: K&I Corp. has current liabilities of$445,000, a quick ratio of 0.82, an inventory turnover of…

A: Step 1: DefinitionsCurrent Ratio:The current ratio is a financial metric used to evaluate a…

Q: What is the receivables turnover ratio for this financial accounting question?

A: Formula for Receivables Turnover Ratio:Receivables Turnover Ratio = Net Sales /Average Accounts…

Q: its a account question

A: Given Data: Market return (RmR_mRm) = 12.50%Risk-free rate (RfR_fRf) = 3.00%Expected return of…

Q: Suppose you received a total of $1,245 in dividends plus $16,430 in proceeds from selling 520 shares…

A: To calculate the capital gains yield, follow these steps:Given data:Number of shares = 520Purchase…

Question

100%

i need question answer general accounting question

A company reported the following information for the month of October:
•
Sales: $78,600
•
Sales discounts: $420
Sales returns and allowances: $3,150
•
Cost of goods sold: $45,800
Calculate this company's gross margin ratio.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
A company reported the following information for the month of July: Net sales $ 57,500 Cost of goods sold 33,200 Required: Calculate this company's gross margin ratio.
Using the data below, compute lan's gross profit percentage for the month of January. Net Sales Cost of goods sold Operating expenses Other income Income tax expense $12,000 3,000 7,000 500 1,000 Round answer to the nearest whole percentage.
What is the company's gross margin ratio of this financial accounting question?
Using the data below, compute lan's return on sales ratio for the month of January. Net Sales $12,000 Cost of goods sold 3,000 Operating expenses 7,000 Other income 500 Income tax expense 1,000 Round answer to the nearest whole percentage.
Wright & Boyle Inc. had the following income statement for the month of May: Sales revenue $470,800.00 Cost of goods sold 217,766.40 Gross margin $253,033.60 Less: Selling expenses 86,199.20 Administrative expenses 74,942.80 Operating income $91,891.60 What was the selling expense percent?
What is the gross margin? General accounting
The following is Cullumber Company’s income statement for the past year. Sales revenue $336,000 Cost of goods sold 134,400 Gross margin 201,600 Operating expenses 145,600 Operating income $56,000 What is the gross margin percentage? (Round answer to 0 decimal places, e.g. 45%.) Gross margin percentage enter gross margin percentage rounded to 0 decimal places %
What is the gross margin