Refer to the following mentioned data. (In millions) 2014 2013 2012 Net revenues $ 8,268 $ 8,052 $7,175 Cost of products sold 5,370 5,140 4,365 Gross margin $2,898 $2,912 $2,810 a. Calculate the gross profit ratio for each of the past three years. b. Assume that Campbell s net sales for the first four months of 2015 totaled $2.7 billion. Calculate an estimated cost of goods sold and gross profit for the four months, using the gross profit ratio for 2014.

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter15: Financial Statement Analysis
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refer following data

Refer to the following mentioned data.
(In millions)
2014
2013
2012
Net revenues
$ 8,268
$ 8,052 $7,175
Cost of products sold
5,370
5,140
4,365
Gross margin
$2,898 $2,912 $2,810
a. Calculate the gross profit ratio for each of the past three years.
b. Assume that Campbell s net sales for the first four months of 2015
totaled $2.7 billion. Calculate an estimated cost of goods sold and
gross profit for the four months, using the gross profit ratio for 2014.
Transcribed Image Text:Refer to the following mentioned data. (In millions) 2014 2013 2012 Net revenues $ 8,268 $ 8,052 $7,175 Cost of products sold 5,370 5,140 4,365 Gross margin $2,898 $2,912 $2,810 a. Calculate the gross profit ratio for each of the past three years. b. Assume that Campbell s net sales for the first four months of 2015 totaled $2.7 billion. Calculate an estimated cost of goods sold and gross profit for the four months, using the gross profit ratio for 2014.
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