Summit Retail Inc. reports the following balances: Sales Revenue: $1,200,000 Sales Returns and Allowances: $160,000 Sales Discounts: $40,000 Cost of Goods Sold: $620,000 What is the gross profit rate? a) 50% b) 60% c) 45% d) 38%

Summit Retail Inc. reports the following balances: Sales Revenue: $1,200,000 Sales Returns and Allowances: $160,000 Sales Discounts: $40,000 Cost of Goods Sold: $620,000 What is the gross profit rate? a) 50% b) 60% c) 45% d) 38%

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...

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Question

What is the gross profit rate ?

Summit Retail Inc. reports the following balances:
Sales Revenue: $1,200,000
Sales Returns and Allowances: $160,000
Sales Discounts: $40,000
Cost of Goods Sold: $620,000
What is the gross profit rate?
a) 50%
b) 60%
c) 45%
d) 38%

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