Gross Profit

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Gross Profit Questions and Answers

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How do you find out the gross profit percentage of a product to sell?
What is the company's gross profit?
The following information is presented below: Operating expenses $ 50000 Sales returns and allowances 4000 Sales discounts 7000 Sales revenue 160000 Cost of goods sold 94000 Gross Profit woul...
The following Financial information is presented below: Operating expenses $ 24000 Sales returns and allowances 6000 Sales discounts 3000 Sales revenue 186000 Cost of goods sold 93000 The gr...
Gross profit equals the difference between: a. net income and operating expenses. b. sales revenue and cost of goods sold plus operating expenses. c. sales revenue and cost of goods sold. d. sa...
What does it mean if a product sells for 170 and 75% of sales are on account? Find the gross profit?
Bob s Barber Shop estimates their gross revenue for the second quarter to be given by the polynomial 7x^3 - 9x^2 - 2x + 4. The shop estimates their costs for that quarter to be given by x^2 + 7x -...
Bob's Barber Shop estimates their gross revenue for the second quarter to be given by the polynomial 7x3 + 6x2 -6x- 3. The shop estimates their costs for that quarter to be given by 6x^2-9x + 9. Fo...
On the income statement, gross profit is defined as what?
Veronica earns an annual salary of $30,572 plus commission. She receives a 5% commission on sales of $3,675. What is her gross annual pay?
Suppose a forwarder gives you a quote for the transport of a container from Paris to Shanghai. The cargo consists of 15 pallets, each with a volume of 1 m3 and weighing 210 kg. Compare the alternat...
Purses, Inc., sold 8 purse(s) that cost $40 each to its customers for a price of $90 each. The gross profit amount on the income statement will equal $______.
Driver Company had a $24,000 beginning inventory and $27,000 ending inventory. Net sales were $178,000; purchases, $75,000; purchase returns and allowances, $3,000; and freight in, $6,000. Cost of...
What is the significance of gross profit?
Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31, 2020. Beginning Inventory 271 units @ $81/unit March 10 purchased 204 units @ $85/uni...
A company overstated its ending inventory balance by $4,000 in 2021. What impact will this error have on the cost of goods sold and gross profit in 2021 and 2022?
Financial information is presented below: Operating expenses $50,000 Sales returns and allowances 3,000 Sales discounts 5,000 Sales revenue 184,000 Cost of goods sold 98,000 Gross Profit would be:...
The total sales for Sure Analytics Company is $1,250,000 and cost of goods sold is $300,000. The gross profit will be (a) $1,550,000 (b) $950,000 (c) $416,000 (d) None of the above
Financial information is presented below: Operating expenses $50,000 Sales returns and allowances 4,000 Sales discounts 7,000 Sales revenue 160,000 Cost of goods sold 94,000 Gross Profit woul...
Financial information is presented below: Operating expenses $43000 Sales returns and allowances 2000 Sales discounts 7000 Sales revenue 170000 Cost of goods sold 90000 Gross Profit would be?
Darlington Company entered into the following business events during its first month of operations. The company uses the perpetual inventory system. (a) The company purchased $12,400 of merchandis...
Financial information is presented below: Operating expenses $24,000; Sales returns and allowances 6,000; Sales discounts 4,000; Sales revenue 154,000; Cost of goods sold 92,000. The gross profit r...
Financial information is presented below: Operating Expenses $90600 Sales Returns and Allowances 17200 Sales Discounts 11700 Sales Revenue 319300 Cost of Goods Sold 173000 Gross profit would be?
If a firm's gross profit has declined substantially, this could be attributed to all but which of the following reasons? 1. The cost of buying inventory has increased more rapidly than selling pri...
RU Listening manufactures cell phones and is developing a new model with a feature (targeted at parents of teens) that prevents the phone from dialing an owner-defined list of phone numbers between...
Larkspur, Inc. reported the following in its 2017 and 2016 income statements. 2017 2016 Net sales $183,000 $146,400 Cost of goods sold 109,750 87,750 Operating expenses 39,000 19,500 Income tax ex...
Operating expenses $ 22000 Sales returns and allowances 5000 Sales discounts 5000 Sales revenue 150000 Cost of goods sold 108000 The gross profit rate would be A) 0.21. B) 0.26. C) 0.23. D) 0.75.
Operating expenses $ 59000 Sales returns and allowances 2000 Sales discounts 9000 Sales revenue 194000 Cost of goods sold 102000 Gross Profit would be a. $92000. b. $90000. c. $81000. d. $94000.
Operating expenses $38,000 Sales returns and allowances $2,000 Sales discounts $5,000 Sales revenue $140,000 Cost of goods sold $86,000 Calculate the gross profit.
Operating expenses $35,000 Sales returns and allowances $7,000 Sales discounts $4,000 Sales revenue $186,000 Cost of goods sold $106,000 What is the gross profit rate?
Financial information is presented below: Operating expenses = $23,000 Sales returns and allowances = 9,000 Sales discounts = 4,000 Sales revenue = 174,000 Cost of goods sold = 99,000 What is...
Torres Company has the following account balances, extracted from its multiple-step income statement for the current year. Compute the missing amounts. Sales = $107,800 Sales Returns and Allowanc...
The following are selected account balances for Charlie Company's operations for the FY ended December 31,2016. Accounts Amount Net Sales $100,500 Administrative Expenses 22,000 Selling Expenses 1...
Financial information is presented below: Operating expenses $35,000 Sales returns and allowances 7,000 Sales discounts 4,000 Sales revenue 186,000 Cost of goods sold 106,000 The gross profit...
Heels R Us Inc. is a women's shoe retailer. On February 1st, 2013; the company purchased 500 units of a popular new model A shoe for $20 each. On March 3rd, the company purchased 700 units of the n...
Financial information is presented below: Operating expenses $60,000 Sales returns and allowances 2,000 Sales discounts 6,000 Sales revenue 140,000 Cost of goods sold 106,000 Gross Profit wou...
Three identical units of Item K113 are purchased during July, as shown below. Item K113 Units Cost July 9 Purchase 1 153 17 Purchase 1 174 26 Purchase 1 191 Assume that one unit is sold on July 31...
Financial information is presented below: Operating expenses = $59,000 Sales returns and allowances = 2,000 Sales discounts = 9,000 Sales revenue = 194,000 Cost of goods sold = 102,000 What i...
The following are selected account balances for Charlie Company's operations for the FY ended December 31, 2016. (All balances are normal): Net Sales $110,750 Administrative Expenses $22,000 Sellin...
One item is omitted in each of the following four lists of income statement data. Sales $445,500 (b) $1,239,000 (d) Cost of merchandise sold (a) $333,725 (c) $440,000 Gross profit 83,610 83,830 45...
Given the following information: Gross Profit would be a) $70,000. b) $66,000. c) $62,000. d) $55,000.
Financial information is presented below: Operating expenses $63000 Sales returns and allowances 5000 Sales discounts 5000 Sales revenue 176000 Cost of goods sold 109000 Gross Profit would be: A....
Financial information is presented below: Operating expenses = $55,000 Sales returns and allowances = $3,000 Sales discounts = $9,000 Sales revenue = $200,000 Cost of goods sold = $87,000 Wha...
Relevance of the gross profit margin depends upon: (a) the accuracy of the gross profit percentage. (b) the net sales. (c) averaging prior periods' net sales and total sales to verify which is best...
Why do you think a company would choose to report or not report a gross profit line?
If I am given forecasted monthly sales and market research and the basics of what they believe start up costs are, am I able to derive balance sheets or forecasted financial statements from this ea...
Cupery Co. has sales revenue of $147,000, cost of goods sold of $60,000, and operating expenses of $24,000. What are its gross profit and gross profit rate?
The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal): Item/Account 2017 2016 Account Receivable $9,800 $9,400 Inventor...
Topanga Group began operations early in 2021. Inventory purchase information for the quarter ended March 31, 2021, for Topanga's only product is provided below. The unit costs include the cost of f...
Financial information is presented below: Operating expenses = $31,000 Sales returns and allowances $9,000 Sales discounts = $5,000 Sales revenue = $162,000 Cost of goods sold = $108,000 The...
Sales revenue less cost of goods sold is called: a. gross profit. b. net profit. c. net income. d. marginal income.
Revenue minus all direct costing of making the goods or supplying the services is known as? a. Gross profit b. Cost of sales c. Expenses d. Net profit
The calculations for some profitability ratios are the same as the calculations for common-size analysis of the income statement. Which of the following profitability ratios would also be determine...
Financial information is presented below: Operating expenses = $53,000 Sales returns and allowances = $5,000 Sales discounts = $9,000 Sales revenue = $206,000 Cost of goods sold = $103,000 Gro...
A company's net sales were $749,600, its cost of goods sold was $247,370 and its net income was $74,750. Calculate the gross margin ratio.
Sam Hernandez has noticed a marked decline in his gross profit percentage from last year to this year, from 60% down to 40%. As his business manager, Sam has asked you why this occurred, and how to...
How would I compute the gross profit percentage? Sara earned net sales revenue of 67,000,000 in 2016. Cost of goods sold was 40,870,000, and net income reached 8,000,000, the company's highest ever...
Financial information is presented below: Operating expenses $28,000 Sales returns and allowances 7,000 Sales discounts 3,000 Sales revenue 150,000 Cost of goods sold 91,000 Gross profit would be w...
For the year 2015, McGuire's Auto had Operating Income of $320,000. It also had the following expenses: - Salaries and Wages Expense $75,000 - Building and Utilities Expense $86,000 - Interest E...
Bill company sells inventory to the public. The sale price of everything sold to the public was $50,000. Sales returns were $8,000. Inventory purchases were $2,000. Purchase returns were $2,000....
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