Below are amounts found in the income statements of three companies. Operating Expenses $5,900 Cost of Goods Nonoperating Expenses $2,900 7,900 Income Tax Company Henry Net Sales Sold Expense $2,900 $50,000 53,000 $15,еее 39,220 38,280 Grace 14,100 James 58,000 3,900 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.) Operating Income Before Net Income / Gross Profit Income Income Taxes Loss 35,000 s 5,900 $ 23,300 (8,220) Henry 26,200 $ Grace 13,780 14,100 (8,220) James 19,720 3,900 15,820 11,920 Req 1 Req 2a >
Below are amounts found in the income statements of three companies. Operating Expenses $5,900 Cost of Goods Nonoperating Expenses $2,900 7,900 Income Tax Company Henry Net Sales Sold Expense $2,900 $50,000 53,000 $15,еее 39,220 38,280 Grace 14,100 James 58,000 3,900 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.) Operating Income Before Net Income / Gross Profit Income Income Taxes Loss 35,000 s 5,900 $ 23,300 (8,220) Henry 26,200 $ Grace 13,780 14,100 (8,220) James 19,720 3,900 15,820 11,920 Req 1 Req 2a >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Below are amounts found in the income statements of three companies.
Operating
Expenses
$5,900
14,100
3,900
Cost of Goods
Nonoperating
Expenses
$2,900
7,900
Income Tax
Net Sales
Sold
Company
Henry
Expense
$2,900
$50,000
$15,000
Grace
53,000
39,220
James
58,000
38,280
3,900
Required:
1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income.
2-a. For each company, calculate the gross profit ratio.
2-b. Which company has the most favorable ratio?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2a
Req 2b
For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income.
(Negative amounts should be indicated by a minus sign.)
Operating
Income
Income Before
Net Income /
Gross Profit
Income Taxes
Loss
Henry
$
35,000
$
5,900
$
26,200
$
23,300
Grace
13,780
14,100
(8,220)
(8,220)
James
19,720
3,900
15,820
11,920
< Req 1
Req 2a >

Transcribed Image Text:Below are amounts found in the income statements of three companies.
Cost of Goods
Operating
Expenses
$5,900
14,100
3,900
Nonoperating
Expenses
$2,900
7,900
Income Tax
Company
Henry
Net Sales
Sold
Expense
$2,900
$50,000
$15,000
Grace
53,000
58,000
39,220
38,280
James
3,900
Required:
1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income.
2-a. For each company, calculate the gross profit ratio.
2-b. Which company has the most favorable ratio?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2a
Req 2b
For each company, calculate the gross profit ratio.
Gross Profit Ratio
Accounts in Ratio
Amounts
Net sales
Henry
%3D
Cost of goods sold
Net sales
Grace
Cost of goods sold
Net sales
James
Cost of goods sold
Rea 1
Rea 2b
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