Shown below is a recent income statement for B-D Electric. B-D ELECTRIC Income Statement For the Year
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Question:
Shown below is a recent income statement for B-D Electric.
B-D ELECTRIC | ||
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Income Statement | ||
For the Year Ended January 31, Year 2 | ||
Net sales | $ 7,500,000 | |
Less: Cost of goods sold | 4,100,000 | |
Gross profit | $ 3,400,000 | |
Less: Operating expenses | 1,975,000 | |
Operating income | $ 1,425,000 | |
Less: Non-operating expenses: | ||
Interest expense | $ 175,000 | |
Income taxes expense | 280,000 | 455,000 |
Net Income | $ 970,00 |
Assume that comparative statements of financial position (balance sheets) for B-D Electric indicate average total assets for the year of $2,500,000, and average total equity of $2,050,000.
Required: Compute the following: (Round each to one decimal point.)
(a) Gross profit rate. | ________% |
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(b) Net income as a percentage of net sales. | ________% |
(c) Return on assets. | ________% |
(d) Return on equity. | ________% |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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