During the current year, merchandise is sold for $200,000 cash and for $950,000 on account. The cost
Question:
a. What is the amount of the gross profit?
b. Compute the gross profit as a percent of sales.
c. Will the income statement necessarily report a net income? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 52% (23 reviews)
a 345000 200000 950000 805000 b 30 345000 11...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Accounting questions
-
During the current year, merchandise is sold for $795,000. The cost of the merchandise sold is $477,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross...
-
During the current year Dunham Corporation expects to produce 10,000 units and has budgeted the following: net income $300,000; variable costs $1,100,000; and fixed costs $100,000. It has invested...
-
Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $906,000 and cost of goods sold of $679,500. For this same period, Bottom has sales of $319,000...
-
Find the smallest positive angle and the smallest negative angle (numerically) coterminal with but not equal to the given angle. 47.0
-
On June 30, 2016, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept: a. Prepare an absorption costing...
-
Good airline scheduling is essential to delivering outstanding customer service with high plane utilization rates. Airlines must schedule pilots, flight attendants, aircraft, baggage handlers,...
-
In a steam condenser, the partial pressure of steam and air are 0.060 bar and 0.007 bar respectively. The condenser pressure is (a) 0.067 bar (b) 0.060 bar (c) 0.053 bar (d) 0.007 bar
-
Suppose you work summers house-sitting for people while they are away on vacation. Some of your customers pay you immediately after you finish a job. Some customers ask you to send them a bill. It is...
-
Suppose you observed that one-year T-bills are trading with a yield to maturity (YTM) of 4.75%. The yield spread between AAA and BB rated corporate bonds is 130 basis points. The maturity yield...
-
The total assets and total liabilities (in millions) of Dunkin Brands Group and Starbucks Corporation follow: Determine the owners equity of each company. Dunkin Brands Group $3,457 Starbucks Assets...
-
Based upon the data shown in Exercises 51 and 52, comment on the operating performance of CVS in comparison to Walgreen.
-
Office Depot operates a chain of office supply stores throughout the United States. For 2004, Office Depot reported (in thousands) net sales of $13,564,699, gross profit of $4,256,139, and operating...
-
Wilsons Auto Repair ended 2011 with Accounts Receivable of $85,000 and a credit balance in Allowance for Uncollectible Accounts balance of $11,000. During 2012, Wilsons Auto Repair had the following...
-
A motorboat is heading straight across a channel at 8 kph while a tidal current runs at 6 kph at right angles to the motorboat's direction. The boat ends up 3 km downstream from where it was aiming....
-
Complete a summary of a mission and vision statement for a fictional company (boxology company).
-
Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A...
-
A cord of wood contains 1 2 8 ft ^ ( 3 ) of wood. If a stack of wood is 4 ft wide and 4 ft high, how long must it be if it contains exactly 1 cord?
-
What legal area holds the greatest threat to the future of American business?
-
The following information pertains to two hypothetical companies defined benefit pension plans as of 31 December 2010: For company ABC, the present value of the companys defined benefit obligation...
-
Outline a general process applicable to most control situations. Using this, explain how you would develop a system to control home delivery staff at a local pizza shop.
-
Use the contour map of (x, y) in Figure 8 to explain the following statements: (a) y is larger at P than at Q, and x is more negative at P than at Q. (b) x (x, y) is decreasing as a function of y;...
-
On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing section of the statement of cash flows, assuming no gain...
-
Sanhueza, Inc., reported a net cash flow from operating activities of $162,500 on its statement of cash flows for the year ended December 31, 2010. The following information was reported in the Cash...
-
List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $100,320. All other amounts are correct, except the cash balance at the end of...
-
According to Larry Swedroe (in his talk & in his book), why might an investor expect investments in companies with high ESG scores ("green companies") to underperform investments in companies with...
-
A paper machine makes frequent weight changes. The production management feels that the stock flow can be safely moved at a maximum rate of 50 gpm per minute. Before trying this on the machine they...
-
State of Economy Probability of State 31.1 Consider the following information on a portfolio of three stocks: Rate of Return in Percent Stock A Stock B Stock C Occurring Portfolio Weights Boom Normal...
Study smarter with the SolutionInn App