Answered: A company shows the following balances:…

A company shows the following balances: Sales Revenue $1,470,000 Sales Returns and Allowances 269,000 Sales Discounts 36,750 Cost of Goods Sold 780,000 What is the gross profit rate %?

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: Subject:- General Account

A: Explanation:Debt Finance: Refers to borrowing money that must be repaid with interest. It creates a…

Q: XYZ Ltd has a balanced day of 31 December. On 1 January 2XX3, it had an opening inventory balance of…

A: Step 1:Cost of goods sold:- Cost of goods sold means the cost incurred in manufacturing goods.…

Q: Goods available for sale are $118,000; beginning inventory is $37,000; ending inventory is $42,000;…

A: Explanation of Cost of Goods Sold (COGS): This represents the direct costs associated with producing…

Q: What is the company's unit contribution margin?

A: Explanation of Sales Revenue: Sales revenue represents the total amount of money a company receives…

Q: Accounting problems

A: To solve this, we use the accounting equation: Assets=Liabilities+Owner's Equity From this…

Q: fINANCIAL ACCOUNT

A: Step 1: Formula for Gross Profit Percentage Gross Profit Percentage=(Net SalesGross Profit)×100…

Q: None

A: Cost variance is the difference between the actual cost incurred and the standard cost that was…

Q: Assignment Discuss the potential impact of rising inventory levels on the company's financial…

A: 2. Steps the Company Can Take to Manage InventoryAdopt an Inventory Management SystemUse tools like…

Q: What were total sales for the year??

A: Key Information:Contribution Margin Ratio (CMR): 40%Breakeven Sales: $200,000Net Income Before…

Q: What is the profit margin?? General accounting

A: Step 1: Definition of Profit MarginProfit Margin is a profitability ratio that measures the…

Q: If the after tax income is different, why ???

A: To determine whether the after-tax income will differ in each scenario, let's analyze both…

Q: Please provide this question solution general accounting

A: Step 1: Definition of Key TermsGross Income: Total income before any deductions, exemptions, or…

Q: What is the unit product cost for the month under variable cost????

A: Step 1: Definition of Variable CostingVariable Costing is a costing method in which only variable…

Q: All Account Question Solution give

A: Question 2:Step 1: Calculate the Net IncomeNet Income = Annual Sales x Profit MarginNet Income =…

Q: Question

A: Working capital measures the short-term liquidity of a company, indicating its ability to meet its…

Q: ??

A: Explanation of Cost of Goods Manufactured: Cost of goods manufactured represents the total cost of…

Q: The firm's current ratio and acid test ratio are closest to what values

A: Explanation of Current Ratio:The current ratio is a financial metric that measures a company's…

Q: Solution to this

A: Explanation of Discounted Payback Period: This is a capital budgeting method that measures how long…

Q: Accurate answer

A: Step 1:First calculate the cost per employee: Cost per employee = Total cost incurred / Total number…

Q: The contribution margin ratio is calculated as how? a) Gross margin divided by sales b) Operating…

A: Concept of Contribution MarginThe contribution margin is the amount of revenue remaining after…

Q: The contribution margin ratio is calculated as how? a) Gross margin divided by sales b) Operating…

A: Explanation of Contribution Margin: This represents the amount of sales revenue remaining after…

Q: The formula AQ * (SP - AP) is the: a. direct materials spending variance. b. direct materials volume…

A: The correct answer is:c. direct materials price variance. ExplanationThe formula: Direct Materials…

Q: Problem related accounting

A: Given:Fixed Costs = $52,000Target Pre-Tax Income = $88,000Contribution Margin Ratio = 35% or 0.35…

Q: financial account

A: To calculate gross profit, use the formula: Gross Profit=Net Sales−Cost of Goods Sold (COGS) Step…

Q: How much overhead was applied?

A: Given:Predetermined Overhead Rate = 179% = 1.79Actual Direct Labor Cost =…

Q: Financial accounting MCQ

A: Explanation of ROE (Return on Equity): Return on Equity is a key financial metric that measures how…

Q: Provide correct answer general accounting

A: Step 1: Definition of Degree of Operating LeverageThe degree of operating leverage (DOL) is a ratio…

Q: What is his recognize gain ?? General accounting

A: 1. Calculate the total cost basis for each purchase:1994 purchase: 30 shares * $20/share = $6001999…

Q: General Accounting question

A: Step 1: Define Operating LeverageOperating leverage indicates the percentage change in operating…

Q: Need help with this accounting questions

A: Step 1:First, calculate the required ending inventory in yards for the month of December: Required…

Q: Question 3.5

A: Explanation of Net Cash Provided by Operating Activities:Net cash provided by operating activities…

Q: Cost Account.

A: Step 1: Understanding the ConceptThe proportion of the company financed by nonowners refers to the…

Q: This is general account problem

A: The accounting equation is: Assets=Liabilities+Owner's Equity Rearranged to find Owner's Equity:…

Q: Blue Corporation's standards call for 3,000 direct labor-hours to produce 1,200 units of product.…

A: Definition of Standard Hours AllowedStandard Hours Allowed refers to the total amount of direct…

Q: What is the net opreting income for the month under variable costing??

A: Step 1: Definition of Variable CostingVariable Costing Method is an accounting approach where only…

Q: Financial accounting question

A: Step 1: Define Cost Of EquityThe cost of equity is an essential figure in calculating the firm's…

Q: General accounting question

A: tax-free interest rate into an equivalent taxable rate using the formula…

Q: general account

A: Step 1: Introduction to inventory valuationInventory valuation is referred to as that method which…

Q: need Answer with this question general Accounting

A: Step 1:The freight term of the sale is FOB destination, which means the seller is responsible for…

Q: Tucker Company makes chairs. Tucker has the following production budget for January-March. January…

A: Step 1: Formula for Raw Material PurchasesThe formula is: Raw Material Purchases=Materials Required…

Q: Financial accounting question

A: Step 1: DefinitionPresent Value of Future Cash Flow (PVCF):The present value of future cash flow…

Q: I want answer financial accounting question

A: Step 1: Contribution margin Contribution margin = Sales x (1 - Variable cost ratio)Contribution…

Q: Discuss the potential impact of rising inventory

A: Assignment: Discussing the Potential Impact of Rising Inventory Levels--- **I. Impact of Rising…

Q: ?

A: In cash flow hedges, the hedging reserve represents the accumulated changes in the fair value of the…

Q: Accounting MCQ

A: Concept of Learning Curve:The learning curve represents the relationship between cumulative…

Q: The actual total direct material cost for the current period ?

A: Explanation of Standard Direct Materials Cost:Standard direct materials cost represents the expected…

Q: Question -2 TJ's has annual sales of $813,200, total debt of $171,000, total equity of $396,000, and…

A: Step 1:Question 2: The return on assets is calculated as follows: Return on assets = Net income /…

Q: General Accounting q Answer

Q: I am waiting for answer

A: Explanation of Common Stock Outstanding: Common stock outstanding represents the total number of…

Q: General Accounting question

A: Step 1: Define Depreciation RateThe depreciation rate is the percentage an organization uses to…

Question

What is the gross profit rate?

A company shows the following balances:
Sales Revenue $1,470,000
Sales Returns and Allowances 269,000
Sales Discounts 36,750
Cost of Goods Sold 780,000
What is the gross profit rate %?

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
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?
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.
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Montalcino Company had net sales of 54,000,000. Montalcino had the following balances: Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 596597, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory
Inventory analysis A company reports the following: Determine (a) the inventory turnover and (b) the number of days sales in inventory. Round to one decimal place.