IBM reports that, for the years 2009 and 2008, the gross profit margins are 45.72% and 44.06% respectively. Both the net profit and the gross profit margins indicated stronger financial positions for IBM from 2008 until 2010. Which one of the following equations would IBM have used to calculate the gross profit margins? Select one: a. Gross profit/Sales x 100/1 b. Net income/Sales x 100/1 c. Gross profit/Net income x 100/1 d. Sales/Gross profit x 100/1

IBM reports that, for the years 2009 and 2008, the gross profit margins are 45.72% and 44.06% respectively. Both the net profit and the gross profit margins indicated stronger financial positions for IBM from 2008 until 2010. Which one of the following equations would IBM have used to calculate the gross profit margins? Select one: a. Gross profit/Sales x 100/1 b. Net income/Sales x 100/1 c. Gross profit/Net income x 100/1 d. Sales/Gross profit x 100/1

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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