Question: During the current year, merchandise is sold for $2,850,750. The cost of the merchandise sold is $1,995,525. a. What is the amount of the gross

During the current year, merchandise is sold for $2,850,750. The cost of the merchandise sold is $1,995,525.
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.

Step by Step Solution

★★★★★

3.37 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 855225 2850750 1995525 b 30 8552252850750 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

142-B-A-M-B (1029).docx

120 KBs Word File

Students Have Also Explored These Related 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 $795,000. The cost of the merchandise sold is $477,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross...

PLEASE COMPLET EXERCISES FROM CHATPER 6 OF THE TEXBOOK: EX 6-1 During the current year, merchandise is sold for $ 775,000. The cost of merchandise sold is $426,250. a. What is the amount of gross...

JUL SHOW ME ON BE 5-6 Adjusting entries Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 ing entries based upon the following: A Sales returns of $125,000 and...

I need help in these exercise. E4-1 , E4-2 , E4-3, E4-5, E4-6 Obj. 1 E4-1 Determining gross profit During the current year, merchandise is sold for $6,400,000. The cost of the goods sold is...

Determining Gross Profit During the current year, merchandise is sold for $979,000. The cost of the goods sold is $704,880. a. What is the amount of the gross profit? $ b. Compute the gross profit...

During the current year, merchandise is sold for $937,000. The cost of merchandise sold sold is $684,010. a. What is the amount of the gross profit? $fill in the blank 1 b. Compute the gross profit...

1- Asset Turnover Financial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company follow: 20Y3 20Y2 Sales $873,000 $624,000 Total assets: Beginning of year 440,000...

JUST EX 5/2 EX 5-1 Determining gross profit During the current year, merchandise is sold for $2,450,000. The cost of the merchandise sold is $1,519,000. a. What is the amount of the gross profit? b....

Use the following extensive-form game to answer the questions below.a. List the feasible strategies for player 1 and player 2.b. Identify the Nash equilibria to this game.c. Find the subgame...

Find the potential rational zero of f(x) = 3x* + 5x' + 25x + 45x 18.

Discuss the characteristics, strengths, and weaknesses of generic qualitative inquiry in the research of children with incarcerated [ aremts

The ages (in years) of a random sample of shoppers at a gaming store are shown. Determine the range, mean, variance, and standard deviation of the sample data set. 12, 17, 23, 13, 19, 18, 21, 16, 14,...

You are given the sample mean and the population standard deviation. Use this information to construct the 90% and 95% confidence intervals for the population mean. Interpret the results and compare...

Thirty percent of consumers prefer to purchase electronics online. You randomly select 8 consumers. Find the probability that the number of consumers who prefer to purchase electronics online is (a)...

The masses (in grams) of a sample of a species of fish caught in the waters of a region are shown below. 18.2 17.7 17.3 17.9 18.9 17.8 21.7 22.7 21.7 Determine whether the data are qualitative or...

On January 1st, a machine with a useful life of five years and a residual value of $4,500 is purchases for $22,500. What is the depreciation expense in year 2 using the double-declining-balance...

9. Discuss the fundamental risk and control issues associated with fixed assets that are different from raw materials and finished goods.

You are considering an investment in a new start-up company, Giraffe Inc., an Internet service provider. A review of the companys financial statements reveals a negative retained earnings. In...

Dillip Lachgar is the president and majority shareholder of Argon Inc., a small retail store chain. Recently, Dillip submitted a loan application for Argon Inc. to Compound Bank. It called for a...

The current years amount of net income (after income tax) is 25% larger than that of the preceding year. Does this indicate an improved operating performance? Discuss.

Principal Varimax Component Rotated Loadings Loadings Variables f1 f2 f1 f2 Communalities, h? y1 0.039 0.989 0.025 0.990 0.981 y2 0.889 0.268 0.893 0.256 0.863 y3 0.893 -0.158 0.891 -0.170 0.822 y4...

a. What is the expected return on a portfolio that is equally invested in the two assets? b If a portfolio of the two assets has a beta of .64, what are the portfolio weights? c. If a portfolio of...

What is the default storage class for any function Pick ONE option C ) Static C ) ) Extern O Auto o Register Clear Selection