Determining Gross Profit During the current year, merchandise is sold for $863,000. The cost of the goods sold is $647,250. a. What is the amount of the gross profit? $ b. Compute the gross profit percentage (gross profit divided by sales). % c. Will the income statement always report a operating income?

Determining Gross Profit During the current year, merchandise is sold for $863,000. The cost of the goods sold is $647,250. a. What is the amount of the gross profit? $ b. Compute the gross profit percentage (gross profit divided by sales). % c. Will the income statement always report a operating income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The cost of goods for sale of Ram Products Inc. was P7, 645,000 and the ending inventory amounts to P1, 314,300. What was the cost of goods sold?
The cost of merchandise sold by Kohl's Corporation for a recent year was $12,265 million. The balance sheet showed the following current account balances (in millions): Merchandise inventories Accounts payable Balance, End of Year Balance, Beginning of Year $ 4,038 1,251 $ 3,814 1,511 Determine the amount of cash payments for merchandise.
Gross Profit During the current year, merchandise is sold for $140,400 cash and $588,600 on account. The cost of the goods sold is $539,500. What is the amount of the gross profit?$
Gross Profit During the current year, merchandise is sold for $366,100 cash and $1,420,000 on account. The cost of the merchandise sold is $1,014,300. What is the amount of the gross profit? 5:58 PM 10/20/2020 Cop 8.
During the current year, merchandise is sold for $43000 cash and for $307000 on account. The cost of merchandise sold is $82000. What is the amount of gross profit?
During the current year, merchandise is sold for $141,000 cash and $615,200 on account. The cost of the goods sold is $468,800. What is the amount of the gross profit?
Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional information follows: Return on total assets is 16% (average total assets is $62,500). Inventory turnover is 5 (average inventory is $7,800). Accounts receivable turnover is 8 (average accounts receivable is $7,700). Income Statement Net Sales Cost of goods sold Selling, general, and administrative expenses 8800 Income tax expenses 3800 Net Income
Question: During the current year, merchandise is sold for $194,200 cash and $454,200 on account. The cost of the merchandise sold is $505,800. What is the amount of the gross profit?
PISCES Company provided the following information for this year: Merchandise purchased for resale P5,500,000; Freight out 40,000; Freight in 70,000; Purchase Returns P80,000 and Interest on inventory loan P 25,000. What amount should be reported as inventoriable cost of the purchase?
Assets ($) 2019 2018 2017 Cash on Hand & at Banks 1844388 2907252 3696201 Accounts Receivable Net 21373839 27958818 23638244 Notes Receivable 0 0 0 Post Dated Cheques 7430502 5910795 5481999 Short Term Investments 111502 111502 0 Inventory 14772540 15359933 16127022 Total Current Assets 50764763 59355234 56162203 Long Term Investments 2247122 2305477 2346362 Fixed Assets Net 36960544 32892460 23018610 Lands 3338194 3344028 3364400 Projects in Progress 5544 4350057 10455510 Total Fixed Assets 40304282 40586545 36838520 Other Assets 6417935 6157108 5067638 Total Assets 99734102 108404364 100414723 Liabilities ($) 2019 2018 2017 Accounts and Notes Payable 9488026 9042459 6830212 Credit Banks 21176536 19278649 13508941 Short Term Loans 15347569 14306482 12568640 Accrued Part of Long Term Loans 3816788 3818532 3663256 Total Current Liabilities 63973817 67090416 44303485 Long Term Loans & Notes Payable 9883426 8547662 10299548 Other…
During the current year, merchandise is sold for $53,200 cash and for $81,600 on account. The cost of the goods sold is $87,620. What is the amount of the gross profit?
During the current year, merchandise is sold for $173,900 cash and $467,700 on account. The cost of the goods sold is $397,800. What is the amount of the gross profit?$fill in the blank 1