A company reports the following balances: Sales Revenue $ 2,500,000 Sales Returns and Allowances $ 180,000 Sales Discounts $ 70,000 Cost of Goods Sold $ 1,350,000 What is the gross profit rate? a. 38% b. 40% c. 36% d. 46%

A company reports the following balances: Sales Revenue $ 2,500,000 Sales Returns and Allowances $ 180,000 Sales Discounts $ 70,000 Cost of Goods Sold $ 1,350,000 What is the gross profit rate? a. 38% b. 40% c. 36% d. 46%

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...

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Question

Kindly help me with accounting questions

A company reports the following balances:
Sales Revenue $ 2,500,000 Sales Returns and Allowances $ 180,000 Sales
Discounts $ 70,000 Cost of Goods Sold $ 1,350,000
What is the gross profit rate?
a. 38%
b. 40%
c. 36%
d. 46%

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