A company shows the following balances: Cost of goods sold $217,000 Income tax expense 33,600 Operating expenses 172,000 Sales 550,000 Sales discounts 12,000 Sales returns and allowances 37,000 What is the gross profit margin? 1) 56.7%. 2) 34.3%. 3) 43.3%. 4) 39.5%.

A company shows the following balances: Cost of goods sold $217,000 Income tax expense 33,600 Operating expenses 172,000 Sales 550,000 Sales discounts 12,000 Sales returns and allowances 37,000 What is the gross profit margin? 1) 56.7%. 2) 34.3%. 3) 43.3%. 4) 39.5%.

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: Atlas manufacturing estimated the following solve this accounting questions

A: Step 1: Definition of Overhead Allocation RateThe overhead allocation rate is the rate at which…

Q: Question No. 16 - Calculate the firm's asset turnover using Dupont analysis if it has a profit…

A: The formula for Return on Assets (ROA) using DuPont analysis is: ROA = Profit Margin × Asset…

Q: Question: The following information applies to Job 235 completed by Trisha Manufacturing Company…

A: Concept of Contract Price:The contract price represents the total amount agreed upon between the…

Q: Financial accounting

A: Step 1: Define Profit MarginThe profit margin ensures an adequate return on the cash invested. To be…

Q: Kindly help me with this general accounting question

A: Step 1: Define Profit Margin RatioThe net profit ratio or profit margin ratio is a profitability…

Q: What was your total rate of return on these financial accounting question?

A: Step 1: Define Total Rate of ReturnThe total rate of return on an investment or a stock is the…

Q: Provide correct option general accounting

A: Step 1: Define Cost of Goods ManufacturedWhen you add up all the manufacturing cost for a period and…

Q: I need this question financial accounting

A: Step 1: Define Budgeted Material PurchasesThe direct materials budget is used to calculate the…

Q: Why does business model analysis affect accounting choices?

A: ReferencesEpstein, B. J., & Jermakowicz, E. K. (2020). Wiley IFRS 2020: Interpretation and…

Q: Please provide correct answer general Accounting

A: Step 1: Cost of Goods Sold (COGS)Cost of Goods Sold is given to be $84,000.We can also confirm the…

Q: General Accounting

A: Step 1: Define Gross Profit PercentageAnalysts and investors use it to compare the company's…

Q: What's the company's Gross Profit?

A: Explanation of Gross Profit:Gross Profit is the financial metric that represents the difference…

Q: Jackson trading uses a periodic inventory solve this accounting questions

A: Step 1:Identify the valuesStep 2:Substitute into the formulaStep 3:Perform the calculations

Q: What is the future value of these financial accounting question?

A: Step 1: Define Future ValueThe future value of a lump sum indicates how much the lump sum will be…

Q: Provide correct answer general Accounting

A: Step 1: Define Profit MarginThe business's profit margin determines how well it profits from its…

Q: Kindly help me with accounting questions

A: The average payment period (APP) can be calculated using the formula: Average Payment Period =…

Q: What specifies the valuation basis for cooperative patronage dividends? (a) Cash payment amount only…

A: Explanation of Cooperative Patronage Dividends:Patronage dividends are payments made by cooperatives…

Q: How much is direct labor cost?

A: Explanation of Total Manufacturing Costs:Total manufacturing costs represent the sum of all expenses…

Q: Question No. 18 - Calculate the firm's asset turnover using Dupont analysis if it has a profit…

A: Explanation of Profit Margin: Profit margin is a key financial metric that shows how much profit a…

Q: I need answer of this question solution general accounting

A: Step 1: Define Manufacturing overheadManufacturing Overhead is expenses other than direct material…

Q: Compute

A: Concept of NOPAT Turnover (ATO):The NOPAT Turnover, also referred to as Asset Turnover (ATO),…

Q: Financial accounting

A: To determine the total cost recorded in the Work in Process for Job A-1 on May 21, we need to…

Q: The Gross Profit would be

A: Explanation of Net Sales:Net sales represent the total revenue a company earns from sales after…

Q: Given correct answer financial accounting

A: To calculate the cost of common stock using the CAPM (Capital Asset Pricing Model) equation, the…

Q: Need correct solution general accounting

A: Step 1: Define Intangible AssetThe assets of a company can be divided into two categories namely…

Q: Please given correct option general accounting

A: Step 1: Define Cost of Goods Sold (COGS)COGS is the total manufacturing cost of all goods sold by a…

Q: Provide correct answer general Accounting

A: Step 1: Difference in income Difference = Absorption costing operating income - Variable costing…

Q: Provide correct answer general accounting

A: Step 1: Define Cash cycleCash cycle refers to the cycle of flow of cash that starts with the payment…

Q: None

A: Step 1: Define PensionPension is a perpetuity cash flow that is received by an employee after his or…

Q: General Accounting

A: Step 1: Define Earnings Per ShareThe earnings per share show the relationship between total income…

Q: I need this question answer General Accounting

A: Step 1: Define Effect of Collection Period on Cash FlowCash flow from accounts receivable is…

Q: ABC Company has the following accounts and normal balance: please give answer the accounting…

A: Step 1: Define Net IncomeNet income is an important indicator of the profitability of the business,…

Q: I want both answer

A: Explanation of Overhead Rate:The overhead rate is a calculation used in cost accounting to allocate…

Q: What is the length of the firm's cash conversion cycle on this accounting question?

A: Step 1: Define Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) is a financial metric that…

Q: Financial Accounting: A particular security's default risk premium is 1 percent. For all securities,…

A: The question requires the determination of the equilibrium rate of return.The equilibrium rate of…

Q: General Accounting

A: The calculation of the Reserve Ratio is as follows: Reserve Ratio = (Reserve Maintained / Bank…

Q: Maple manufacturing has provided its contribution solve this accounting questions

A: Step 1: Definition of Contribution MarginThe contribution margin is the portion of sales revenue…

Q: The interest on a solve this question financial accounting

A: Step 1: Define Note ReceivableA note is a written promise to pay a certain amount at a certain…

Q: Solve

A: Explanation of Stock Dividends:Stock dividends refer to the distribution of a company's own shares…

Q: I won't to this question answer general Accounting

A: Step 1: Define Net LossThe amount of net loss is presented in the income statement. Net loss will be…

Q: Need help with this general accounting question

A: Step 1: Define Ending InventoryThe total monetary value of products held by a company at the end of…

Q: Need help to get answer of this accounting question

A: Explanation of Sustainability Impact Measurement: Sustainability impact measurement is the process…

Q: Subject: Financial Accounting-How do satisfaction-guaranteed refund policies affect revenue…

A: Explanation of Revenue Recognition:Revenue recognition refers to the accounting principle that…

Q: Please given answer general Accounting

A: Step 1: Recall COGS Formula• COGS = Beginning Inventory + Purchases - Purchase Returns - Ending…

Q: Abc corporation allocates overhead solve this question

A: Step 1: Analysis of the information givenExpected overhead cost = $1,025,000Expected direct labor…

Q: Provide correct answer general Accounting

A: Step 1: Define Asset Turnover RatioThe total asset turnover ratio is one of the activity financial…

Q: What purpose does documentary reliability analysis serve in digital accounting?

A: Option a: This option is correct because documentary reliability analysis ensures the authenticity…

Q: Do fast this question answer financial accounting

A: The government's deficit will be the difference between its spending and its tax revenue. In this…

Q: Need help this question general accounting

A: Step 1: Define Net PayAn employer pays an employee the total amount in a pay-check after deducting…

Q: What are its annual interest charges for this financial accounting question?

A: Step 1: Define Interest ChargeInterest charge refers to the cost of borrowing funds (like a loan)…

Question

100%

I need this question answer general Accounting

A company shows the following balances:
Cost of goods sold
$217,000
Income tax expense
33,600
Operating expenses
172,000
Sales
550,000
Sales discounts
12,000
Sales returns and allowances 37,000
What is the gross profit margin?
1) 56.7%.
2) 34.3%.
3) 43.3%.
4) 39.5%.

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 information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
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?
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.)
Financial Accounting
Want Answer of the following question
What is the gross profit margin for this accounting question?
A company shows the following balances: Cost of goods sold $217,000 Income tax expense 33,600 Operating expenses 172,000 Sales 550,000 Sales discounts 12,000 Sales returns and allowances 37,000 What is the gross profit margin? 1) 56.7%. 2) 34.3%. 3) 43.3%. 4) 39.5%.
Provide Answer
A company shows the following balances: Sales Revenue $2962000Sales Returns and Allowances 402000Sales Discounts 60000Cost of Goods Sold 1350000 What is the gross profit rate? 46.0%58.0%54.0%66.0%
A company shows the following balances: Sales $1,000,000 225,000 25,000 600,000 13 Sales Returns and Allowances Sales Discounts Cost of Goods Sold What is the gross profit rate? a. 60% b. 80% c. 40% d. 20% Explore
A company shows the following balances: Sales Revenue Cost of Goods Sold Sales Returns and Allowances Sales Discounts Operating Expenses What is the gross profit? $230,000 $440,000 $240,000 O $140,000 $1,000,000 $560,000 $180,000 $20,000 $100,000