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...
-
Brooks Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant...
-
Ronda Rousey Fight Times Perhaps the most popular fighter since the turn of the decade, Ronda Rousey is famous for defeating her opponents quickly. The five number summary for the times of her first...
-
A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows: A: $390 a unit, total of $39,000, 1/10, n/30, plus freight of $750....
-
Consider the following three simple statements: h: All rooms have hardwood floors. r: Some rooms have rugs. w: The house has windows. Compound Statement p: (rV w) ^-h Compound Statement q: (hw) V -...
-
As the accountant for Runson Moving Company, you are preparing the companys annual return, Form 940 and Schedule A. Use the following information to complete Form 940 and Schedule A on pages 5-40 to...
-
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...
-
What is the purpose of a guard-condition?
-
Auditing Risk Management in XYZ Corporation Introduction: XYZ Corporation, a multinational conglomerate, operates in various industries, including manufacturing, technology, and finance. The company...
-
What refers to the number of products or services that consumers will purchase at varying cost at a given time? Explain.
-
Trek Bicycles, Inc. is a manufacturer of bicycles and sells its bikes to retail outlets that serve the consumer market. Trek bicycles are priced at $300 and over and are typically sold to consumers...
-
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 3 1 : Amount Sales $ 8 8 0 , 0 0 0 Selling price per...
-
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor - hours. At the beginning of the year, it estimated that 3 3 , 0 0 0 direct labor - hours would...
-
__________ is a federal law that can result in cleanup of hazardous waste cases.
-
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...
-
Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago...
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
-
Correlle dishes are known for being mostly unbreakable in daily use. Kevin's 12-year-old son decided to test this "unbreakable" idea by throwing a plate hard onto the floor. It broke. what this is an...
Study smarter with the SolutionInn App