A company shows the following balances: Sales Revenue $2,000,000 Sales Returns and Allowances 360,000 Sales Discounts Cost of Goods Sold 40,000 1,120,000 What is the gross profit percentage? A. 70% B. 30% C. 44% D. 56%

A company shows the following balances: Sales Revenue $2,000,000 Sales Returns and Allowances 360,000 Sales Discounts Cost of Goods Sold 40,000 1,120,000 What is the gross profit percentage? A. 70% B. 30% C. 44% D. 56%

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

GENERAL ACCOUNT

A company shows the following balances:
Sales Revenue
$2,000,000
Sales Returns and Allowances 360,000
Sales Discounts
Cost of Goods Sold
40,000
1,120,000
What is the gross profit percentage?
A. 70%
B. 30%
C. 44%
D. 56%

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