Shown below is selected information from the financial statements of Supreme Company Dollar amounts are in millions (except for the per share data). Income statement information: Net sales $1,030 Cost of goods sold $470 Operating expenses $390 Net income $290 Balance sheet information: Average total equity $1,400 $3,000 Average total assets Supreme reported earnings per share for the year of $3 and paid cash dividends of $3 per share. At year-end, the Wall Street Journal listed Supreme's capital stock as trading at $78 per share. Supreme's gross profit rate was: a) 54.37% b) 16.50% c) 28.16% d) 45.63%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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Answer? ? Financial accounting

Shown below is selected information from the financial statements of Supreme
Company Dollar amounts are in millions (except for the per share data).
Income statement information:
Net sales
$1,030
Cost of goods sold
$470
Operating expenses
$390
Net income
$290
Balance sheet information:
Average total equity
$1,400
$3,000
Average total assets
Supreme reported earnings per share for the year of $3 and paid cash dividends of
$3 per share. At year-end, the Wall Street Journal listed Supreme's capital stock as
trading at $78 per share.
Supreme's gross profit rate was:
a) 54.37%
b) 16.50%
c) 28.16%
d) 45.63%
Transcribed Image Text:Shown below is selected information from the financial statements of Supreme Company Dollar amounts are in millions (except for the per share data). Income statement information: Net sales $1,030 Cost of goods sold $470 Operating expenses $390 Net income $290 Balance sheet information: Average total equity $1,400 $3,000 Average total assets Supreme reported earnings per share for the year of $3 and paid cash dividends of $3 per share. At year-end, the Wall Street Journal listed Supreme's capital stock as trading at $78 per share. Supreme's gross profit rate was: a) 54.37% b) 16.50% c) 28.16% d) 45.63%
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