Help Question:Iron Company had a $28,000 beginning inventory and a $29,000 ending inventory. Net saleswere $171,000; purchases were $90,000; purchase returns and allowances, were $2,000; andfreight in was $9,000. The cost of goods sold for the period is $96,000.What is Iron's gross profit percentage?A. 44%B. 16%C. 56%D. 17%

Step 1 - Calculate Net Purchases. Net Purchases=Purchases−Purchase Returns and Allowances+Freight…

Answered: Question: Iron Company had a $28,000…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.23MCE

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Question: Iron Company had a $28,000 beginning inventory and a $29,000 ending inventory. Net sales were $171,000; purchases were $90,000; purchase returns and allowances, were $2,000; and freight in was $9,000. The cost of goods sold for the period is $96,000. What is Iron's gross profit percentage? A. 44% B. 16% C. 56% D. 17%
What is iron's gross profit percentage?
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Determining Gross Profit During the current year, merchandise is sold for $11,750,000. The cost of the goods sold is $7,050,000. a. What is the amount of the gross profit?$ b. Compute the gross profit percentage (gross profit divided by sales). Round to the nearest whole number. % c. When will the income statement report net income?
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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

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