During the current year, merchandise is sold for $775,000. The cost of the merchandise sold is $426,250. a. What is the amount of the gross

Answered step by step

Verified Expert Solution

Question

62 users unlocked this solution today!

During the current year, merchandise is sold for $775,000. The cost of the merchandise sold is $426,250.
a. What is the amount of the gross profile?
b. Compute the gross profile percentage (gross profile divided by sales).
c. Will the income statement necessarily report a net income? Explain.

Step by Step Solution

★★★★★

3.30 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Link Copied!

Step: 1

a 348750 775000 426250 b 45 348750 775000 ... View full answer

blur-text-image

Question Has Been Solved by an Expert!

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

100% Satisfaction Guaranteed-or Get a Refund!

Step: 2Unlock detailed examples and clear explanations to master concepts

blur-text-image_2

Step: 3Unlock to practice, ask and learn with real-world examples

blur-text-image_3

Document Format ( 1 attachment)

52-B-A-M-B (256).docx

120 KBs Word File

Claim Your Hoodie Now!

Recommended Textbook for

Financial and Managerial Accounting

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

flashcard-anime

Study Smart with AI Flashcards

Access a vast library of flashcards, create your own, and experience a game-changing transformation in how you learn and retain knowledge

Explore Flashcards

Students Have Also Explored These Related Accounting Questions!

Q:

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...

Answered: 3 weeks ago

Q:

During the current year, merchandise is sold for $250,000 cash and for $975,000 on account. The cost of the merchandise sold is $735,000. a. What is the amount of the gross profit? b. Compute the...

Answered: 3 weeks ago

Q:

During the current year, merchandise is sold for $200,000 cash and for $950,000 on account. The cost of the merchandise sold is $805,000. a. What is the amount of the gross profit? b. Compute the...

Answered: 3 weeks ago

Q:

Why is an investment portfolio containing a mix of stocks and bonds less risky than one containing a single asset class? Because the markets for stocks and bonds tend to move in the same direction at...

Answered: 3 weeks ago

Q:

Suncor Energy Inc. reported the following information for the fiscal years ended December 31, 2014, and December 31, 2013 (in millions): Instructions (a) Calculate Suncor's asset turnover and return...

Answered: 3 weeks ago

Q:

Hartley Company has a production process that involves three processes. Units move through the processes in this order: cutting, stamping, and then polishing. The company had the following...

Answered: 3 weeks ago

Q:

Salary (if known)

Answered: 3 weeks ago

Q:

The following data relate to the operations of Lim Corporation, a wholesale distributor of consumer goods: Current assets as of December 31: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Answered: 3 weeks ago

Q:

3. (8 pts) You have been authorized by your company to decide which of three recommended projects to invest in, but you may start no more than two projects in the current calendar year. All three...

Answered: 3 weeks ago

Q:

3. In column G, Brett wants to calculate the number of days the invoice is overdue. If the age of the invoice is greater than 30 days, it is overdue. Calculate the days overdue as follows: a. b. C....

Answered: 3 weeks ago

Q:

619 As a risk-averse investor, would you prefer bonds with short or long periods until maturity? Why?

Answered: 3 weeks ago

Q:

Determine the position of the centre of gravity (c.g.) and 2nd moment of inertia with respect to c.g. of the section shown below, where A = 6 mm and B 4 mm. X B a) Calculate the X = b) y A B mm with...

Answered: 3 weeks ago

Q:

Create a variable named "$Cred" and use a parenthetical with the Get-Credential cmdlet Run this line of code and it will prompt you for the Username and Password for the remote computer. The results...

Answered: 3 weeks ago

Q:

Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which...

Answered: 3 weeks ago

Q:

You are designing a wireless multihop network that can tolerate 5% packet loss, meaning that 95% of the packets must be delivered to the destination. i) Would you recommend using TCP or UDP at the...

Answered: 3 weeks ago

Q:

On August 31, 2018, a fire destroyed totally the rented "bodega" or stockroom of the Company. The following are some of the data of the company: Merchandise inventory, December 31, 2017 P110,000 For...

Answered: 3 weeks ago

Q:

When rental cars are sold on the used car market they are sold for lower prices than cars of the same model and year that were owned by individuals. Does this price difference reflect adverse...

Answered: 3 weeks ago

Q:

The following data are supplied for the common stocks of Nikola Corporation, Tesla, Inc. and General Motors: Nikola Corp (NKLA) Tesla Inc. (TSLA) Close Price ($) Close Price ($) 67.53 30.00 40.81...

Answered: 3 weeks ago

Q:

Discuss why dollar weights differ from risk weights in a portfolio.

Answered: 3 weeks ago

Q:

The following financial information represents Hadley Company's first year of operations, 2011: After reading Hadley's financial statements, you conclude that the company had a very successful first...

Answered: 3 weeks ago

Q:

Excerpts from the 2011 financial statements of Finely, Lts, a service company, follow: Fees earned...............$240,000 Accounts receivable..............68,000 Allowance for doubtful...

Answered: 3 weeks ago

Q:

Fine Line Service began operations on January 28, 2008. The company does not establish an allowance for doubtful accounts. It simply recognizes a bad debt expense when an account is deemed...

Answered: 3 weeks ago

Q:

(Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way...

Answered: 3 weeks ago

Q:

PLEASE ANSWER ALL 4 MULTIPLE CHOICE QUESTIONS Which one of the following should not be included in the cash flow time line of a new product? Increase in accounts payable for new product inventory...

Answered: 3 weeks ago

Q:

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The...

Answered: 3 weeks ago

Previous Question Next Question