?? 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: Define ProfitProfit is the excess of revenue over expenses. Businesses don't calculate…

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%
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What is iron's gross profit percentage?
Determining Gross Profit During the current year, merchandise is sold for $900,000. The cost of the goods sold is $522,000. 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 $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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