Explanation Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It measures the profitability of the company. Gross profit is the difference between the total revenues and cost of goods sold. It is calculated by using the following formula: Gross profit rate = Gross profit Net sales × 100 Compute the amount of gross profit. Particulars Amounts in ($) Amounts in ($) Sales Revenue 480,000 Less: Sales Returns and Allowances 15,000 Sales Discounts 20,000 Net Sales Revenue $445,000

3rd Edition

ISBN: 9780133791129

Author: Jane L. Reimers

Publisher: Pearson Higher Ed

See similar textbooks

Videos

Question

Chapter 5, Problem 10MCQ

To determine

Compute the gross profit percentage.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 5, Problem 9MCQ

Chapter 5, Problem 1SEA

Students have asked these similar questions

Please explain the solution to this general accounting problem with accurate explanations.

What is the correct answer with accounting

Please explain the solution to this general accounting problem with accurate principles.

Chapter 5 Solutions

Financial Accounting

Ch. 5 - In each separate situation, identify which company...Ch. 5 - Prob. 2YT Ch. 5 - Prob. 3YT Ch. 5 - Prob. 4YT Ch. 5 - Prob. 5YT Ch. 5 - Jaynes Jewelry Store purchased three diamond and...Ch. 5 - Prob. 7YT Ch. 5 - Prob. 8YT Ch. 5 - Prob. 9YT Ch. 5 - Prob. 1Q

Ch. 5 - What is the difference between freight-in and...Ch. 5 - What is the difference between a purchase return...Ch. 5 - What is a purchase discount? What is the effect of...Ch. 5 - Prob. 5Q Ch. 5 - Prob. 6Q Ch. 5 - Prob. 7Q Ch. 5 - What is the difference between a periodic and...Ch. 5 - What is inventory shrinkage?Ch. 5 - What is the difference between the physical flow...Ch. 5 - What are the common cost flow methods for...Ch. 5 - If inventory costs are rising, which method (FIFO,...Ch. 5 - If inventory costs are rising, which method (FIFO,...Ch. 5 - Does LIFO or FIFO give the bestmost currentbalance...Ch. 5 - How do taxes affect the choice between LIFO and...Ch. 5 - Does the periodic or perpetual choice affect the...Ch. 5 - What is the lower-of-cost-or-market rule and why...Ch. 5 - What does the gross profit percentage measure? How...Ch. 5 - What does the inventory turnover ratio measure?...Ch. 5 - What are some of the risks associated with...Ch. 5 - Prob. 1MCQ Ch. 5 - Prob. 2MCQ Ch. 5 - Prob. 3MCQ Ch. 5 - Prob. 4MCQ Ch. 5 - Prob. 5MCQ Ch. 5 - Prob. 6MCQ Ch. 5 - Prob. 7MCQ Ch. 5 - Prob. 8MCQ Ch. 5 - Prob. 9MCQ Ch. 5 - Prob. 10MCQ Ch. 5 - Prob. 1SEA Ch. 5 - Prob. 2SEA Ch. 5 - Prob. 3SEA Ch. 5 - Prob. 4SEA Ch. 5 - Prob. 5SEA Ch. 5 - Prob. 6SEA Ch. 5 - Prob. 7SEA Ch. 5 - Prob. 8SEA Ch. 5 - The following information pertains to item #007SS...Ch. 5 - Prob. 10SEA Ch. 5 - Prob. 11SEB Ch. 5 - Prob. 12SEB Ch. 5 - Prob. 13SEB Ch. 5 - Prob. 14SEB Ch. 5 - Prob. 15SEB Ch. 5 - Prob. 16SEB Ch. 5 - Prob. 17SEB Ch. 5 - Given the following information, calculate the...Ch. 5 - Prob. 19SEB Ch. 5 - Prob. 20SEB Ch. 5 - Prob. 21EA Ch. 5 - Prob. 22EA Ch. 5 - Prob. 23EA Ch. 5 - Prob. 24EA Ch. 5 - August 11Purchased four units at 400 each August...Ch. 5 - Prob. 26EA Ch. 5 - Prob. 27EA Ch. 5 - Prob. 28EA Ch. 5 - Prob. 29EA Ch. 5 - Prob. 30EA Ch. 5 - Given the following information, calculate the...Ch. 5 - Prob. 32EB Ch. 5 - Prob. 33EB Ch. 5 - Prob. 34EB Ch. 5 - Prob. 35EB Ch. 5 - Prob. 36EB Ch. 5 - Prob. 37EB Ch. 5 - Assume Radio Tech uses a perpetual inventory...Ch. 5 - Prob. 39EB Ch. 5 - Prob. 40EB Ch. 5 - Prob. 41EB Ch. 5 - Prob. 42EB Ch. 5 - Prob. 43PA Ch. 5 - Prob. 44PA Ch. 5 - Prob. 45PA Ch. 5 - The following transactions occurred during July...Ch. 5 - Prob. 47PA Ch. 5 - Prob. 48PA Ch. 5 - Calculate cost of goods sold and ending inventory;...Ch. 5 - Prob. 50PA Ch. 5 - Green Bay Cheese Company is considering changing...Ch. 5 - The following information is for Leos Solar...Ch. 5 - Prob. 53PA Ch. 5 - Prob. 54PB Ch. 5 - Prob. 55PB Ch. 5 - Prob. 56PB Ch. 5 - Prob. 57PB Ch. 5 - Prob. 58PB Ch. 5 - Prob. 59PB Ch. 5 - Calculate cost of goods sold and ending inventory;...Ch. 5 - Prob. 61PB Ch. 5 - Castana Company is considering changing inventory...Ch. 5 - The following information is for Falling Numbers...Ch. 5 - Prob. 64PB Ch. 5 - Prob. 1FSA Ch. 5 - Prob. 2FSA Ch. 5 - Prob. 3FSA Ch. 5 - Prob. 1CTP Ch. 5 - Prob. 2CTP

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Compute the gross profit percentage.

Solution Summary: The author explains that the correct option is Option c, which shows the relationship between the gross profit and net sales.

Videos

Compute the gross profit percentage.

Want to see the full answer?

Chapter 5 Solutions