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Calculate cost of merchandise inventories, Gross profit and operating income. Both in dollar...

Question:

Calculate cost of merchandise inventories, Gross profit and operating income. Both in dollar terms and percentage.

2016 2015
Cost of goods sold $8,511,100 $7,787,500
Inventories $1,378,500 $1,306,400
Total net revenues $21,315,900 $19,162,700
Operating income $4,171,900 $3,601,000
Net Earnings $2,817,700 $2,757,400

Gross Profit Margin & Operating Income Margin:

Both the gross profit and the operating income is often stated as a percentage of sales revenue in order to compare it to previous years and to other companies in the same industry, regardless of the size of its sales revenue.

Answer and Explanation:


2016 2015
Sales Revenue $21,315,900 $19,162,700
Cost of Goods sold $8,511,100 $7,787,500
Ending Inventory $1,378,500 $1,306,400
Cost of inventories available for sale $9,889,600 $9,093,900
Cost of inventories available for sale as a percentage of sales 46.40% 47.46%


2016 2015
Total net revenues $21,315,900 $19,162,700
Cost of goods sold $8,511,100 $7,787,500
Gross Profit $12,804,800 $11,375,200
Gross Profit Percentage 60.07% 59.66%


2016 2015
Total net revenues $21,315,900 $19,162,700
Operating income $4,171,900 $3,601,000
Operating income percentage $19.57% 18.79%



Learn more about this topic:

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How to Calculate Gross Profit Margin: Definition & Formula

from Financial Accounting: Help and Review

Chapter 5 / Lesson 17
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