calculate Alex‘s gross profit percentage and return on sales ratio. (Round answer to one decimal place) **Profitability Analysis**Alex Enterprises reports the following information on its year-end income statement:| Item | Amount ||-----------------------------|-----------|| **Net Sales** | $190,000 || **Cost of Goods Sold** | $130,000 || **Operating Expenses** | $20,000 || **Other Income** | $10,000 |**Required**Calculate Alex's gross profit percentage and return on sales ratio. (Round answers to one decimal place.)| Item | Percentage ||-----------------------------|------------|| **Gross profit percentage =** | || **Return on sales ratio =** | |### Explanation of Terms and Ratios:- **Gross Profit Percentage**: This ratio measures how much out of every dollar of sales a company keeps in earnings. It is calculated as: \[ \text{Gross Profit Percentage} = \left( \frac{\text{Net Sales} - \text{Cost of Goods Sold}}{\text{Net Sales}} \right) \times 100 \]- **Return on Sales Ratio**: This ratio indicates how efficiently a company turns sales into profit, factoring in all expenses. It is calculated as: \[ \text{Return on Sales Ratio} = \left( \frac{\text{Net Income}}{\text{Net Sales}} \right) \times 100 \] where: \[ \text{Net Income} = \text{Net Sales} - \text{Cost of Goods Sold} - \text{Operating Expenses} + \text{Other Income} \]By using the provided figures, you can derive these key financial ratios to understand the profitability of Alex Enterprises.

Explanation of Concept Gross Profit Percentage is been calculated with the help of following formula…

x Enterprises reports the following information on its year-end income st t Sales $190,000 Operating Expenses $20,000 st of Goods Sold 130,000 Other Income 10,000 quired culate Alex's gross profit percentage and return on sales ratio. und answer to one decimal place.) oss profit percentage = 96

x Enterprises reports the following information on its year-end income st t Sales $190,000 Operating Expenses $20,000 st of Goods Sold 130,000 Other Income 10,000 quired culate Alex's gross profit percentage and return on sales ratio. und answer to one decimal place.) oss profit percentage = 96

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Directions. Prepare a single-step Income Statement For the year ended Dec. 31, 2019, at space provided below. Malinao Bakey shows the following data: Sales Revenue 100,000.00 Cost of Good Sold 30,000.00 Utilities Expense 500.00 Salaries 20,000.00 Rent Expense 50,000.00 Advertising 1,500.00 Income tax 1,000.00 Question: How much the is net profit or income of Malinao Bakery for the year 2019?
If our gross profit is $97,218,350 and our adjusted revenue is $123,518,520 what is our profit margin (use an excel spreadsheet to get your answer, enter your answer as a percent, round to 1 decimal place)?
What I Can Do Given the following amount of the expenses and revenue, solve for the profit using the formula discussed earlier. Explain your computation. Paid Rent : 2,500.00 Paid utility fees : 4,679.18 Supplies : 10,789.86 Delivery cost : 589.00 Employees' salary A. : 450.00 (15days) (4 persons) B. : 650.00 (15days) (1 person) Income : 104,596.50
A Dubai based company has sales of Aed 5,652,800, Cost of Goods sold of Aed 4,172,860 and Admin and General Expenses of Aed 752,600. Calculate the Gross Profit and Net Profit of the company. Also calculate the Profitability Ratio. Onti
If net income was $12,000, interest expense was $6,000, and taxes were $2,000, what is the operating profit margin if sales were $60,000? (Express your answer to one decimal place.) Check Answer
Vishal
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. b Merchandise is sold for cash.
Nabb & Fry Co. reports net income of $30,000. Interest allowances are Nabb $7,300 and Fry $5,500, salary allowances are Nabb $14,300 and Fry $10,800, and the remainder is shared equally. Show the distribution of income. (If an amount reduces the account balance then enter with a negatlve slgn preceding the number e.g. -15,000 or parenthesls e.g. (15,000).) Division of Net Income Nabb Fry Total Salary allowance 24 $4 2$ Interest allowance Remaining excess/deficiency Total division of net income 2$
Please see the picture below. Use the accounts listed and create a multi-step income statement. I need help with this.
Find the Net Income ?
Waterway Company sells one product. Presented below is information for January for Waterway Company. Jan. 1 Inventory 119 units at $4 each 4 Sale 98 units at $8 each 11 Purchase 141 units at $6 each 13 Sale 111 units at $9 each 20 Purchase 160 units at $6 each 27 Sale 95 units at $11 each Waterway uses the FIFO cost flow assumption. All purchases and sales are on account.
Assuming the current ratio equals 2, which of the following would cause the current ratio to increase? O Accrual for payroll. Declaration of cash dividend. O Payment for inventory purchased on account. O Inventory purchased on account.