Summit Trading Co. reports the following financial balances: • Sales Revenue: $900,000 • Sales Returns and Allowances: $85,000 • Sales Discounts: $30,000 • Cost of Goods Sold: $480,000 What is the gross profit rate? a) 52% b) 58% c) 40% d) 46%

Summit Trading Co. reports the following financial balances: • Sales Revenue: $900,000 • Sales Returns and Allowances: $85,000 • Sales Discounts: $30,000 • Cost of Goods Sold: $480,000 What is the gross profit rate? a) 52% b) 58% c) 40% d) 46%

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...

See similar textbooks

Related questions

Q: What is its cash conversion cycle?

A: To calculate the cash conversion cycle (CCC) for Jordan Enterprises, we will use the following…

Q: Accounting question

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) represents the direct costs…

Q: I don't need ai answer general accounting question

A: Step 1: Definition of Price-Earnings (P/E) RatioThe Price-Earnings (P/E) Ratio measures how much…

Q: do fast answer of this account subjects

A: Step 1: Definition of a Balance SheetA balance sheet is one of the financial statements in a…

Q: What was the amount of the cash flow to stockholders of this financial accounting question?

A: Step 1: Define Cash Flow to StockholdersCash flow to stockholders represents the amount of cash…

Q: Triton Manufacturing had a beginning finished goods inventory of $23,500 and an ending finished…

A: Explanation of Beginning Finished Goods Inventory:Beginning finished goods inventory refers to the…

Q: GG Incorporated uses LIFO. GG disclosed that if FIFO had been used, inventory at the end of 2024…

A: we need to determine how the change from LIFO to FIFO affects GG Incorporated's financials,…

Q: Financial Accounting

A: Concept of Return on Investment (ROI)Return on Investment (ROI) measures how efficiently a company…

Q: Financial Accounting

A: Step 1: Define Cost of Retained EarningsThe cost of retained earnings represents the return…

Q: Quick answer of this accounting questions

A: Step 1: Definition of After-Tax Cash Flow from Operations (OCF)After-tax cash flow from operations…

Q: What were Evergreen's net new stock issues in that year on these financial accounting question?

A: Step 1: Define Net New Stock IssuesNet new stock issues refer to the proportion of a company's total…

Q: Suppose Chrysler Motors has 720 million shares outstanding with a share price of $68.25, and $30…

A: Step 1: Calculate Current Equity ValueThe equity value is given by:Equity=Shares Outstanding×Share…

Q: Solve This General accounting problem

A: Explanation of Asset Turnover Ratio: The asset turnover ratio is a financial efficiency metric that…

Q: Mona Equipment Inc. had $18.20 million in sales last year. The cost of goods sold was $9.20 million,…

A: Explanation of Net Income:Net income represents the final profit a company earns after deducting all…

Q: choose best answer

A: To calculate the number of units that must be sold to achieve a target operating income, we use the…

Q: General accounting question

A: Step 1:The interest is the financial cost that the borrower has to pay on the amount borrowed. It is…

Q: can you please solve this account questions

A: The Units of Production (UOP) depreciation method calculates depreciation based on actual usage. The…

Q: Direction did total liabilities change

A: To determine the change in total liabilities for Zebra Corp., we use the basic accounting…

Q: The cost per equivalent unit of direct materials is?

A: Explanation of Weighted-Average Method: The weighted-average method is a process costing approach…

Q: PLEASE HELP WITH MY MISTAKES

A: step: 1 c.Prepare the journal entry for the interest revenue under the straight-line…

Q: Need answer

A: Explanation of High-Low Method:The High-Low Method is a cost estimation technique used to separate…

Q: General accounting question

A: Step 1: Define Units of Production DepreciationUnits of production depreciation is a method of…

Q: At the beginning of 2020, Darwin Company issued 10% bonds with a face value of $600,000. These bonds…

A: The first step is to calculate the semiannual market interest rate. The bonds yield 12% annually,…

Q: Please provide correct solution this financial accounting question

A: Step 1: Definition of Expected ReturnThe expected return on a stock includes both the dividend yield…

Q: Financial accounting

A: Step 1: Definition of Key Terms1. Net Income:Net income is the total profit a company earns after…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Predetermined Overhead Allocation RateThe predetermined overhead allocation…

Q: Can you help me with accounting questions

A: Predetermined overhead rate = (Estimated overhead / Estimated direct labor cost) x 100%This is based…

Q: Ans plz

A: Step 1: Definition of Underapplied or Overapplied OverheadUnderapplied overhead occurs when the…

Q: On June 10, Larkspur Company purchased $7,200 of merchandise from Crane Company, on account, terms…

A: Step 1:Journal:-Recording transactions in the books of account is the first step in accounting…

Q: A manufacturing company uses the weighted-average method for inventory costing. At the end of the…

A: Provided Data:Ending Work-in-Process (WIP) Inventory: 20,500 unitsMaterial Completion:…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Percentage IncreaseA percentage increase measures how much a value has grown…

Q: i don't need ai answer

A: Step 1: Definition of Fringe Benefit CostFringe benefit cost refers to additional expenses incurred…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Average Net Accounts ReceivableThe average net accounts receivable represents…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Share Price Using the Gordon Growth ModelThe Gordon Growth Model (GGM) is used…

Q: hello tutor please help me

A: We are given:Dividend per share = $1.87Dividend payout ratio = 60%Price-to-Earnings (P/E) ratio =…

Q: The amount of john's retained earnings is?

A: Step 1: DefinitionsConcept of Retained EarningsRetained earnings represent the cumulative net income…

Q: What is the price earning ratio for egle corporation?

A: The Price-Earnings (P/E) Ratio is calculated using the formula: P/E Ratio=Earnings per Share…

Q: need this account subjects solutions

A: Step 1: Definition of Accounts Receivable Turnover RatioThe Accounts Receivable Turnover Ratio…

Q: correct answer financial account

A: Step 1: Definition of Overhead Controllable VarianceOverhead controllable variance is the difference…

Q: Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9.7 %. The average debt-to- value…

A: Understanding the Question The question asks us to find out PayPal's new cost of equity if it takes…

Q: help this answer is accounting

A: Step 1: Definition of Activity-Based Costing (ABC)Activity-Based Costing (ABC) is a costing method…

Q: give me answer fast plz

A: Step 1: Definition of Total EquityTotal equity, also known as shareholders' equity, represents the…

Q: Sales revenue should be

A: Explanation of Fixed Costs: Fixed costs are the expenses that remain constant regardless of the…

Q: i want to this question answer account questions

A: To determine how much the profits (net income) will increase when sales increase by 20%, we use the…

Q: can you help me with

A: Step 1: Definition of AssetsAssets are resources owned by a business that provide economic benefits.…

Q: How much did they charge for each pair

A: To determine the selling price per pair of gloves. Here's the step-by-step approach: Step 1:…

Q: expert of account answer

A: Step 1: Definition of Standard CostStandard cost refers to the predetermined cost a company expects…

Q: I want to correct answer general accounting question

A: To calculate total equity at the end of the year, we use the basic accounting equation:Assets =…

Q: Financial accounting

A: Step 1: Information givenActual hours used = 50,000 hoursActual rate per hour = $16.00Standard rate…

Q: provide correct answer of this General accounting question

A: Step 1: Define Net IncomeNet income is the amount of profit a company earns after deducting all…

Question

100%

What is the gross profit rate?

Summit Trading Co. reports the following financial balances:
• Sales Revenue: $900,000
• Sales Returns and Allowances: $85,000
• Sales Discounts: $30,000
• Cost of Goods Sold: $480,000
What is the gross profit rate?
a) 52%
b) 58%
c) 40%
d) 46%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
What is net sales revenue?
What is net sales revenue?
What is Preston industries Inc's gross profit? General accounting
What is the gross profit rate?
Account
Sub. GENERAL ACCOUNT
??
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
What is Preston industries Inc's gross profit?