Below are the Income Statement of ABC Company for two consecutive years.ABC CompanyNet SalesCost of Goods Soldxs3Year 1P 5,000,000880,000Year 2P 6,500,000950,000 Gross ProfitLess: Administrative ExpenseSelling and OperatingExpenseIncome before taxesIncome Tax ExpenseIncome After TaxesFind the following:550, 00095,00020,000600,000105,00040,0003.455.0004,805,000691, 000961, 000P2, 764, 000 P 3,844, 000a. Express the ratio of the Gross Profit of Year 1 to the Cost of Goods Sold of Year 2 in Fractionb. What fraction can you arrive at if you compare the Administrative Expenses of Year 1 to itsYear 2?c. What would be the difference if you subtract your answer from letter a to your answer fromletter b?d. What fraction can you arrive if you will compare the Selling and Operating taxes of Year 2 tothe Net Sales of Year 1?e. Express the ratio of Year 1 Selling and Operating Expense to the Administrative Expense of thesame year in fraction formf. What would be the product of the answers for letters d and e?

Hi student Since there are multiple subparts asked, we will answer only first three subparts. Ratio…

Answered: a Express the ratio of the Gross Profit…

Business

Accounting

a Express the ratio of the Gross Profit of Year 1 to the Cost of Goods Sold ar 2 in Fract

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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