In 2017, Endeaver Company, Ltd. had net sales of £860,000 and cost of goods sold of £533,200. Operating expenses were £221,000, and interest expense was £7,000.
Instructions
(a) Compute Endeaver's gross profit.
(b) Compute the gross profit rate. Why is this rate computed by financial statement users?
(c) What is Endeaver's income from operations and net income?
(d) In what section of its classified statement of financial position should Endeaver report merchandise inventory?