Daisy incorporated sells equipment on installment basis at 25% mark up on cost. Installment sales for the past four years were: 

4,906,660 in 2018, 3,560,900 in 2019, 7,840,480 in 2020 and 8,960,690 on 2021. 

Terms of the sale are as follows; 

Down payment of 10%, 15% of the balance is collected in the year of sale, 20% a year after sale, 35% two years after the year of sale, and the remaining amount will be collected three years after the year of sale. 

Determine the realized gross profit in 2021

Answer rating: 100% (QA)

To calculate the realized gross profit in 2021 we need to first calculate the total gross profit fro... View the full answer