Gross profit rate It is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula. To determine: The gross profit rate for the year 2012 and 2013 of A Company.

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Chapter 5, Problem 20Q

To determine

Gross profit rate

It is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula.

To determine: The gross profit rate for the year 2012 and 2013 of A Company.

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