Determine: 1. Gross profit 2. Operating income 3. Purchases $ $ $ 4. Gross profit ratio...

   

Transcribed Image Text:

Determine: 1. Gross profit 2. Operating income 3. Purchases $ $ $ 4. Gross profit ratio (two decimal places) __ % Salaries expense $116,000 Sales revenue $700,000 Sales returns 10,000 Interest revenue 2,200 Utilities expense 8,000 Cost of goods sold 440,000 Income tax expense 28,000 Rent Expense 12,000 Interest expense 200 Inventory (begin) 30,000 Inventory (end) 20,000 Determine: 1. Gross profit 2. Operating income 3. Purchases $ $ $ 4. Gross profit ratio (two decimal places) __ % Salaries expense $116,000 Sales revenue $700,000 Sales returns 10,000 Interest revenue 2,200 Utilities expense 8,000 Cost of goods sold 440,000 Income tax expense 28,000 Rent Expense 12,000 Interest expense 200 Inventory (begin) 30,000 Inventory (end) 20,000

Answer rating: 100% (QA)

To determine the required values well use the formulas for each calculation 1 ... View the full answer