Johnson Company has sales revenue of $78,000, cost of goods sold of $42,000, and operating expenses of $18,000 for the year ended June 30. Johnson's gross profit is: a. $18,000 b. $36,000 c. $60,000 d. $78,000

Johnson Company has sales revenue of $78,000, cost of goods sold of $42,000, and operating expenses of $18,000 for the year ended June 30. Johnson's gross profit is: a. $18,000 b. $36,000 c. $60,000 d. $78,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Related questions

Q: ??!!

A: Provided Data:Total assets at the beginning of the year = $500,000,000Total assets at the end of the…

Q: Solve this question accounting

A: Step 1: Definition of Fixed-Asset Turnover RatioThe Fixed-Asset Turnover Ratio measures how…

Q: The amount that will remain to be paid?

A: We can solve this step by step using the compound interest formula. Given Data:Principal (P) =…

Q: hello teacher please solve question

A: Step 1: Definition of Units Transferred to Finished Goods (Process Costing)In a process costing…

Q: Jenna wants to set up a photography studio. The cost to rent an office is $4,800 per week. The…

A: Step 1: Calculate Total RevenueDefinition: Total revenue is the money Jenna earns from selling her…

Q: At the start of the year, Jasper Inc. had total assets of $300,000 and total liabilities of…

A: Step 1: Definition of Stockholders' EquityStockholders' Equity represents the owners' residual…

Q: Want Answer

A: Concept of Operating ActivitiesOperating activities are the day-to-day functions of a business that…

Q: Subject financial accounting

A: To calculate the Price-to-Earnings (P/E) ratio, we use the formula: P/E=Market Price per…

Q: General Accounting

A: Step 1: Define Variable CostingVariable Costing is a costing method in which only variable…

Q: subject : General accounting

A: Step 1: Define Gross Profit RatioThe Gross Profit Ratio is a profitability ratio that shows the…

Q: I need help with this problem and accounting question

A: Step 1: Definition of Annual Depreciation Expense (Straight-Line Method)Depreciation expense is the…

Q: answer ?? General accounting

A: Step 1: Define Earnings Before Taxes (EBT)Earnings Before Taxes (EBT) is the profit a company makes…

Q: Comute the missing amount

A: Explanation of Sales:Sales represent the total revenue generated by a company from selling goods or…

Q: Solve this

A: Explanation of Price-to-Earnings (P/E) Ratio: The price-to-earnings ratio is a valuation metric that…

Q: Based on the screenshot, what is the shortest path and duration?

A: Step 1:Given:A traveler needs to find the shortest path and time from city A to city Z. The graph…

Q: What is the amount of equity

A: Concept of AssetsAssets are everything a company owns that has value and can generate future…

Q: help me to solve this general accounting question

A: Step 1: Definition of Return on Equity (ROE):Return on Equity (ROE) is a financial performance ratio…

Q: What is contribution margin ratio?

A: Step 1: Introduction to CVP AnalysisCVP analysis, or cost-volume-profit analysis, is a management…

Q: At year-end, Lumen Corp. has accounts receivable of $250,000 and total credit sales of $1,825,000…

A: Step 1: Definition of Accounts Receivable Days OutstandingAccounts Receivable Days Outstanding (also…

Q: Need Help And Solutions Get Correct Answer of all Questions Without Fail Don't Use Ai

A: Question : 1 Step 1: Definition of Accounting EquationThe accounting equation is the foundation of…

Q: Hi expert please solve this general accounting

A: Step 1: Definition of Break-Even PointThe Break-Even Point (in units) is the number of units a…

Q: Morgan & Co. is currently an all-equity firm with 100,000 shares of stock outstanding at a…

A: To determine how many shares you need to sell to offset the leverage Morgan & Co. is assuming,…

Q: On January 1, 2023, Ferris Corp. acquires Hudson Co. for $2.1 million in cash. Hudson’s balance…

A: Explanation of Goodwill: Goodwill represents the premium paid when acquiring a business that exceeds…

Q: Please provide problem with accounting question

A: Step 1: Definition of Break-Even (Target Profit) Sales in UnitsTo determine the number of units a…

Q: answer? ? Financial accounting

A: Step 1: Define Capital RatiosCapital ratios include measures such as debt-to-capital ratio and…

Q: Financial Accounting

A: Step 1: Definition of Depreciation ExpenseDepreciation expense is the systematic allocation of the…

Q: Compute the equivalent units for Materials.

A: Explanation of Work in Process (WIP):Work in Process refers to the partially completed goods that…

Q: How much should be recorded as goodwill?

A: Explanation of Goodwill: Goodwill represents the premium paid for a business above the fair value of…

Q: Financial Accounting Question please answer

A: Step 1: Definition of Contribution Margin (CM) RatioThe Contribution Margin (CM) Ratio is a…

Q: General accounting

A: Step 1: Definition of Projected Benefit Obligation (PBO)Projected Benefit Obligation (PBO) is the…

Q: Summit Holdings has $280,000 in accounts receivable that will be collected within 70 days. The…

A: Given Data:Investment (Initial Amount Paid) = $260,000Total Collected Amount = $275,000Time Period =…

Q: Bright Tech Inc. sold one of its divisions at a loss of $80,000. The company's income tax rate is…

A: Step 1: Definition of After-Tax LossAfter-Tax Loss is the actual loss reflected on the income…

Q: Tutor, need your help

A: Explanation of Aggregate Constraint Principle: The aggregate constraint principle represents a…

Q: Can you help me with accounting questions

A: Step 1: Definition of Current AssetsCurrent assets are assets that a company expects to convert to…

Q: Suppose Loc Motors, Inc. has 720 million shares outstanding with a share price of $65.20, and $30.85…

A: Let's solve this step by step. Step 1: Calculate the Current Equity Value Equity value is given by:…

Q: None

A: Calculation of Annual Sales RevenueReceivables = Days of Sales x (Annual Sales / Days in a year)or,…

Q: Not use ai please solve this question general accounting

A: Step 1: Define GoodwillGoodwill is an intangible asset that represents the value of a business's…

Q: General Accounting

A: Step 1: Define Full CostingFull Costing (Absorption Costing) This is a costing method where all…

Q: Financial Accounting Question please answer

A: Step 1: Definition of Stockholders' EquityStockholders' Equity refers to the ownership interest of…

Q: General accounting question

A: Step 1: Definition of Fixed CostsFixed Costs are business expenses that do not change with the level…

Q: Financial accounting question

A: Step 1: Define Gross ProfitGross Profit is the difference between Net Sales and Cost of Goods Sold…

Q: Titan Industries had an operating cash flow of $1,200 in 2022. The company's earnings before…

A: Step 1: Definition of Depreciation ExpenseDepreciation expense is the portion of the cost of a fixed…

Q: complete the journal entry

A: For each transaction, we need to identify the accounts that are affected. For example, when Carlene…

Q: What does the lawyer earn during the year

A: Step 1: Definition of Net Earnings (After Expenses)Net earnings refer to the total amount earned…

Q: Tutor, need your help

A: Explanation of Pro Forma Net Income :Pro forma net income represents a forward-looking projection of…

Q: ans ? general accounting question

A: Step 1: Define Target Operating IncomeThe Target Operating Income is the desired profit a company…

Q: The total fixed costs

A: Explanation of High-Low Method:The high-low method is a simple technique used to separate mixed…

Q: General accounting

A: Step 1: Define Net IncomeNet Income is the amount remaining after deducting all expenses (operating,…

Q: Financial Accounting

A: Step 1: Define Operating LeverageOperating leverage measures how sensitive a company's operating…

Q: Financial Accounting

A: Step 1: Define Straight-Line DepreciationStraight-Line Depreciation is a method where an asset's…

Question

100%

Given the solution and accounting question

Johnson Company has sales revenue of $78,000, cost of goods sold of
$42,000, and operating expenses of $18,000 for the year ended June
30. Johnson's gross profit is:
a. $18,000
b. $36,000
c. $60,000
d. $78,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?
During the current year. Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. What is the sales margin?
For the year, Simmons Incorporated reports net sales of $100,000, cost of goods sold of $80,000, and an average inventory balance of $40,000. What is Simmons’ gross profit ratio? a. 20%.b. 25%.c. 40%.d. 50%.
United importers report net income $50,000 and COGS of $300,000. If the company’s gross profit rate was 40%, net sales werea. $500,000b. $750,000c. $83,000d. $550,000
Assume Martinez Company has the following reported amounts: Sales revenue $ 610,000, Sales returns and allowances $ 30,000, Cost of goods sold $ 396,500, and Operating expenses $ 84,000. (a) Compute net sales. Net sales (b) Compute gross profit. Gross profit (c) Compute income from operations. Income from operations (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rate %24
Fields Company presented the following data for the current year: Net sales revenue $275,000 Cost of goods sold 125,000 Operating expenses 40,000 Income tax rate 25% Determine the company's profit margin (rounded) A Select one: O O a. 33% b. 31% C. 28% d. 30%
salamagundi, inc. has the following income statement: For the year ended December 31, 2021 net sales: $160 Cost of goods sold: $100 gross profit: $60 Operating expenses: $40 Net income: $20 Using vertical analysis, what percentage is assigned to operating expenses? a. 25% b. 40% c. 66.7% d. 200%
Car Facts Inc. reports sales of $15,875,118 thousand and cost of sales of $13,691,824 thousand for the fiscal year ended February 28. The gross profit for the year is: Select one: a. $1,464,362 thousand b. 13.80% c. $2,183,294 thousand d. 86.2% e. There is not enough information to determine gross profit.
Parkside Pool reports net sales of $551,000, gross profit of $198,000, and net income of $34,000. The company's cost of goods sold is: $551,000. $232,000. $353,000. $319,000.
A company reported total sales of $220,000 and cost of goods sold (COGS) of $135,000. Calculate the gross profit.
LMN Industries reported net sales of $1,750,000 for the year. The cost of goods sold was $1,365,000. a. Calculate the gross profit and the gross profit ratio for the year.