Income Statement: The income statement of Taco Bell company is given for the years 2020 & 2019. 2020 2019 General and administrative expenses 25,000 24,000 Interest expense 1,200 1,500 Net sales $124,000 $138,000 Selling expenses 11,880 12,720 $1,109 5 1,883 Income taxes 108,000 95,000 COGS 450 600 Gain on Sale of land
Income Statement: The income statement of Taco Bell company is given for the years 2020 & 2019. 2020 2019 General and administrative expenses 25,000 24,000 Interest expense 1,200 1,500 Net sales $124,000 $138,000 Selling expenses 11,880 12,720 $1,109 5 1,883 Income taxes 108,000 95,000 COGS 450 600 Gain on Sale of land
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 98.3C
Related questions
Question
![3. What is the gross profit margin for the company over the years 2020 and 2019
respectively? *
O A) 2.6%; 4.5%
O B) 1.3%; 2.5%
O C) 1.8%; 3.4%
O D) 27.4%; 31.1%
O E) None of the above
4. According to your answer in the previous question (3), the gross profit margin
has decreased from 2019 to 2020. This decline in gross profit could be due to:
A) A decrease in prices caused by competition, deflation, or slow-moving goods that
have been discounted.
B) An increase in the cost of goods and the firm has been unable to pass along the
O increases to customers. This is happened while the selling prices have remained the
same.
O C) All of the above.
O D) None of the above
+ O d0) A EN](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F911101eb-c578-4165-99ed-1792a9b9d5c6%2Fdab1accc-d2f8-4f03-bcad-7cef6be545bc%2Fhxnvjov_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. What is the gross profit margin for the company over the years 2020 and 2019
respectively? *
O A) 2.6%; 4.5%
O B) 1.3%; 2.5%
O C) 1.8%; 3.4%
O D) 27.4%; 31.1%
O E) None of the above
4. According to your answer in the previous question (3), the gross profit margin
has decreased from 2019 to 2020. This decline in gross profit could be due to:
A) A decrease in prices caused by competition, deflation, or slow-moving goods that
have been discounted.
B) An increase in the cost of goods and the firm has been unable to pass along the
O increases to customers. This is happened while the selling prices have remained the
same.
O C) All of the above.
O D) None of the above
+ O d0) A EN
![Income Statement: The income statement of Taco Bell company is given for the
years 2020 & 2019.
2020
2019
General and administrative expenses
25,000
24,000
Interest expense
1,200
1,500
Net sales
$124,000
S138,000
Selling expenses
11,880
12,720
Income taxes
$1,109.5
1,883
108 000
95,000
COGS
450
600
Gain on Sale of land
l2020 and](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F911101eb-c578-4165-99ed-1792a9b9d5c6%2Fdab1accc-d2f8-4f03-bcad-7cef6be545bc%2F9o6t0fu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Income Statement: The income statement of Taco Bell company is given for the
years 2020 & 2019.
2020
2019
General and administrative expenses
25,000
24,000
Interest expense
1,200
1,500
Net sales
$124,000
S138,000
Selling expenses
11,880
12,720
Income taxes
$1,109.5
1,883
108 000
95,000
COGS
450
600
Gain on Sale of land
l2020 and
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