Net sales: Net sales refer to that amount of sales, which is computed by deducting sales returns and allowances and sales discounts from the total sales of the Company. Gross Profit: Gross profit is that profit which is computed by deducting Cost of goods sold from the net sales (Sales after deducting Sales Return and allowances, Sales Discounts). Income from operations: Income from operations refers to that income which is the result of deducting operating expenses from the gross profit of the company. It is calculated in the one of the steps of the multi-step income statement Gross Profit Rate: It is the financial ratio that evaluates the money left out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross profit on sales and net sales. (a) Net sales, (b) Gross profit, (c) Income from operations, (d) Gross profit rate of the A Company.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 5.10BE

To determine

Net sales: Net sales refer to that amount of sales, which is computed by deducting sales returns and allowances and sales discounts from the total sales of the Company.

Gross Profit: Gross profit is that profit which is computed by deducting Cost of goods sold from the net sales (Sales after deducting Sales Return and allowances, Sales Discounts).

Income from operations: Income from operations refers to that income which is the result of deducting operating expenses from the gross profit of the company. It is calculated in the one of the steps of the multi-step income statement

Gross Profit Rate: It is the financial ratio that evaluates the money left out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross profit on sales and net sales.

(a) Net sales, (b) Gross profit, (c) Income from operations, (d) Gross profit rate of the A Company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Requirement 1. For a manufacturing company, identify the following as either a product cost or a period cost: Period cost Product cost a. Depreciation on plant equipment Depreciation on salespersons' automobiles Insurance on plant building Marketing manager's salary Direct materials used Manufacturing overhead g. Electricity bill for human resources office h. Production employee wages

I want to correct answer general accounting question

Tungsten, Inc. manufactures both normal and premium tube lights. The company allocates manufacturing over machine hours as the allocation base. Estimated overhead costs for the year are $108,000. Additional estimated information is given below. Machine hours (MHr) Direct materials Normal 23,000 $60,000 Premium 31,000 $480,000 Calculate the predetermined overhead allocation rate. (Round your answer to the nearest cent.) OA. $4.70 per direct labor hour OB. $3.48 per machine hour OC. $2.00 per machine hour OD. $0.20 per direct labor hour