Below are amounts found in the income statements of three companies. Cost of Goods Operating Expenses...
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Below are amounts found in the income statements of three companies. Cost of Goods Operating Expenses $5,600 16,700 3,600 Nonoperating Expenses $2,600 7,600 Income Tax 叫 Company Henry Grace Net Sales $44,000 47,000 52,000 Sold Expense $2,600 $13,200 31,960 31,200 James 3,600 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? Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.) Operating Income Income Before Net Income/ Gross Profit Income Taxes Loss Henry Grace James Req 1 Req 2a Req 2b For each company, calculate the gross profit ratio. Gross Profit Ratio Accounts in Ratio Amounts Gross profit $ 30,800 Henry 70% %3D Net sales $ 44,000 Gross profit $ 15,040 Grace 32% Net sales $ 47,000 Gross profit $ 20,800 52,000 James 40% %3D Net sales $ II II Req 1 Req 2a Req 2b Which company has the most favorable ratio? Which company has the most favorable ratio? Henry Req 2a Req 2b Below are amounts found in the income statements of three companies. Cost of Goods Operating Expenses $5,600 16,700 3,600 Nonoperating Expenses $2,600 7,600 Income Tax 叫 Company Henry Grace Net Sales $44,000 47,000 52,000 Sold Expense $2,600 $13,200 31,960 31,200 James 3,600 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? Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.) Operating Income Income Before Net Income/ Gross Profit Income Taxes Loss Henry Grace James Req 1 Req 2a Req 2b For each company, calculate the gross profit ratio. Gross Profit Ratio Accounts in Ratio Amounts Gross profit $ 30,800 Henry 70% %3D Net sales $ 44,000 Gross profit $ 15,040 Grace 32% Net sales $ 47,000 Gross profit $ 20,800 52,000 James 40% %3D Net sales $ II II Req 1 Req 2a Req 2b Which company has the most favorable ratio? Which company has the most favorable ratio? Henry Req 2a Req 2b
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Henry Grace James Sales 4400000 4700000 5200000 Less Cost of goods sol... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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