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A company shows the following balances: Sales Revenue $1,000,000 Sales Returns and Allowances 175,000 Sales Discounts 25,000 Cost of Goods Sold 560,000 What is the gross profit rate? a. 56% b. 70% c. 44% d. 30% Aaron Corporation is a merchandising company. Selected account balances are listed below. Calculate the gross profit margin. Sales $250,000 Purchases $112,500 Beginning Inventory = $8,000 Ending Inventory = $15,000 Operating Expenses = $74,000 Income Tax Expense = $5,000 Beginning Retained Earnings = $26,500

A company shows the following balances: Sales Revenue $1,000,000 Sales Returns and Allowances 175,000 Sales Discounts 25,000 Cost of Goods Sold 560,000 What is the gross profit rate? a. 56% b. 70% c. 44% d. 30% Aaron Corporation is a merchandising company. Selected account balances are listed below. Calculate the gross profit margin. Sales $250,000 Purchases $112,500 Beginning Inventory = $8,000 Ending Inventory = $15,000 Operating Expenses = $74,000 Income Tax Expense = $5,000 Beginning Retained Earnings = $26,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company shows the following balances: Sales Revenue $1,000,000 Sales Returns and Allowances 175,000 Sales Discounts 25,000 Cost of Goods Sold 560,000 What is the gross profit rate? a. 56% b. 70% c. 44% d. 30% Aaron Corporation is a merchandising company. Selected account balances are listed below. Calculate the gross profit margin. Sales $250,000 Purchases $112,500 Beginning Inventory = $8,000 Ending Inventory = $15,000 Operating Expenses = $74,000 Income Tax Expense = $5,000 Beginning Retained Earnings = $26,500
Transcribed Image Text:A company shows the following balances: Sales Revenue $1,000,000 Sales Returns and Allowances 175,000 Sales Discounts 25,000 Cost of Goods Sold 560,000 What is the gross profit rate? a. 56% b. 70% c. 44% d. 30% Aaron Corporation is a merchandising company. Selected account balances are listed below. Calculate the gross profit margin. Sales $250,000 Purchases $112,500 Beginning Inventory = $8,000 Ending Inventory = $15,000 Operating Expenses = $74,000 Income Tax Expense = $5,000 Beginning Retained Earnings = $26,500
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