Below are amounts found in the income statements of three companies. Cost of Goods Operating Sold...
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Below are amounts found in the income statements of three companies. Cost of Goods Operating Sold Expenses $15,000 $5,900 14,100 3,900 Company Henry Grace James Net Sales $50,000 53,000 58,000 39,220 38,280 Nonoperating Expenses $2,900 7,900 0 Income Tax Expense $2,900 0 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Below are amounts found in the income statements of three companies. Cost of Goods Operating Sold Expenses $15,000 $5,900 14,100 3,900 Company Henry Grace James Net Sales $50,000 53,000 58,000 39,220 38,280 Nonoperating Expenses $2,900 7,900 0 Income Tax Expense $2,900 0 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio?
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1 Henry a Gross Profit Net Sales Cost of Goods Sold Gross Profit 50000 15000 Gross Profit 35000 b Op... View the full answer
Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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