During the current year, merchandise is sold for $795,000. The cost of the merchandise sold is $477,000.
Question:
a. What is the amount of the gross profit?
b. Compute the gross profit percentage (gross profit divided by sales).
c. Will the income statement necessarily report a net income? Explain. Discuss.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
a 318000 795000 477000 b 40 318000 795000 c No It d...View the full answer
Answered By
Amit Choudhary
I'm new in this profession regarding online teaching but previously i used to teach students near my college. I am teaching on online platform since last year and got good support from the students. I'm teaching on platforms like chegg and vedantu and also at my home in free time.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
During the current year, merchandise is sold for $32,800 cash and $379,500 on account. The cost of the merchandise sold is $250,000. What is the amount of the gross profit?
-
During the current year, merchandise is sold for $375,000 cash and $815,000 on account. The cost of the merchandise sold is $700,000. What is the amount of the gross profit?
-
During the current year, merchandise is sold for $275,000 cash and $990,000 on account. The cost of the merchandise sold is $950,000. What is the amount of the gross profit?
-
Find the slopes of the curves at the given points. Sketch the curves along with their tangents at these points. r = sin 2; = /4, 3/4
-
At the beginning of June, Kimber Toy Company budgeted 4,800 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct...
-
Describe the major characteristics of a Roth IRA.
-
Identify a clique in Graph \(C\) by listing its vertices. Use the given figure. Us Graph A = S U S Graph B U t Graph C S Graph D S
-
Tran Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and...
-
Which statement(s) most directly apply to capitalism? I.There is heavy government regulation of industry. II.Individuals can start some, but not all, kinds of enterprises. III.The price and...
-
Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2018: Gross receipts $...
-
When you purchase a new car, the sticker price includes a destination charge. Are you purchasing the car FOB shipping point or FOB destination? Explain.
-
For (a) through (d), identify the items designated by X and Y. a. Purchases (X + Y) = Net purchases. b. Net purchases + X = Cost of merchandise purchased. c. Merchandise inventory (beginning) + Cost...
-
Construct a scatter plot for the following two numerical variables. x y 12 ........... 5 17 ........... 3 9 ..........10 6 ..........15 10.......... 8 14 .......... 9 8 ............ 8
-
Reports produced by internal auditors are different from audit reports produced by external auditors performing audits under International Standards on Auditing. The reports are produced for...
-
Suppose that a country requires special inspections on all imported food but exempts domestic production from similar inspection. What effect would this have on imports, domestic production, prices,...
-
When the tickets for the Glastonbury Festival go on sale, the demand exceeds supply by a considerable margin. Many people who are willing to pay the price for tickets are excluded from the market....
-
Tickitt & Run are conducting the final audit of Woodhood PLC who are importers and dealers in timber and manufacturers of packing materials. The accounts show results which are comparable to those of...
-
The mean speed for a sample of 39 cars at a certain intersection was 26.50 kilometers per hour with a standard deviation of 2.37 kilometers per hour, and the mean speed for a sample of 142...
-
State the null and alternative hypotheses. Two coworkers commute from the same building. They are interested in whether or not there is any variation in the time it takes them to drive to work. They...
-
6. (Potential Energy and Conservation of Energy) What should be the spring constant k of a spring designed to bring a 1200-kg car to rest from a speed of 95 km/h so that the occupants undergo a...
-
Which of the following temperatures is the coldest: 0 F, 0 C, or 0 K?
-
The following information was drawn from the accounting records of Spartan Company as of December 31, 2010, before the temporary accounts had been closed. The Cash balance was $3,000, and Notes...
-
Closing accounts and the accounting cycle Required a. Identify which of the following accounts are temporary (will be closed to Retained Earnings at the end of the year) and which are permanent. (1)...
-
Closing entries Required Which of the following accounts are closed at the end of the accounting period? a. Dividends b. Retained Earnings c. Utilities Expense d. Salaries Payable e. Salaries Expense...
-
Dave Krug finances a new automobile by paying $ 5 , 6 0 0 cash and agreeing to make 1 0 monthly payments of $ 5 2 0 each, the first payment to be made one month after the purchase. The loan bears...
-
The following financial information is presented for three different companies. Determine the missing amounts.
-
Current Attempt in Progress The stockholders' equity section of Barrel Corporation's balance sheet on Decem ber 3 1 , 2 0 2 6 , appears ballowr Stocktholders equity Paid - in capital \ table [ [ \...
Study smarter with the SolutionInn App