The following information was drawn from the annual reports of two companies. Company A Company B Sales revenue Cost of goods sold $1,000 $2,000 (600) (1,100) Gross margin Operating expenses 400 900 (220) (700) Operating income 180 200 Gain on sale of equipment 150 0 Net income $ 330 $ 200 Based on this information, Company A's gross margin percentage is: a. 60%. b. 55%. c. 45%. d. 40%.

The following information was drawn from the annual reports of two companies. Company A Company B Sales revenue Cost of goods sold $1,000 $2,000 (600) (1,100) Gross margin Operating expenses 400 900 (220) (700) Operating income 180 200 Gain on sale of equipment 150 0 Net income $ 330 $ 200 Based on this information, Company A's gross margin percentage is: a. 60%. b. 55%. c. 45%. d. 40%.

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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