During the current year, merchandise is sold for $45,870,000. The cost of the merchandise sold is $33,026,000.

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 9781337902687

28th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

See More Books

Question Posted: Apr 06, 2021 05:29 AM

See More 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...
Answer Problem 6.12 for a 90% CI. Refer to the data in Table 2.13. Regard this hospital as typical of Pennsylvania hospitals. Table 2.13: Hospital-stay data
What does the term "point cloud" describe in laser-scanning?
Required information [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: The company started when it acquired...
How Do Theories and Models Explain Management and Leadership? (pp. 4549)
Chester has a new design for their product Cone next round that can reduce their material cost of producing units from $8.14 to $7.32. Chester passes on half of all cost savings by cutting the...
The Balance sheet of Asma, Ammar and Anas who are partners in a firm as on 31 st December 2020 was as under: On The date of Balance Sheet, Anas retired from the firm, and following adjustments were...
The NCAA is making plans for distributing tickets to the upcoming regional basketball championships. Up to 10,000 available seats will be divided between the media, the competing universities, and...
During the current year, merchandise is sold for $366,100 cash and $1,420,000 on account. The cost of the merchandise sold is $1,014,300. What is the amount of the gross profit?
The following selected transactions were completed by Niles Co. during March of the current year: Mar. 1. Purchased merchandise from Haas Co., $43,250, terms FOB shipping point, 2/10, n/eom. Prepaid...
An electromagnet produces a magnetic field of 0.550 T in a cylindrical region of radius 2.50 cm between its poles. A straight wire carrying a current of 10.8 A passes through the center of this...
Answer the following problems with solution: Use the following information for the next two questions: The statement of financial position of the partnership of A and B as of December 31, 20x1 is...
Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory Total Production {7.01}
Solution needs urgently. Question 1 (5 points) In times of prosperity (with high incomes and employment), governments at all levels have resources for high cost infrastructure such as roads,...
Write a program (called assignment-1.cxx)-- (40 points) Write down the C++ program based on the following tasks. Creates an Array (1D array) and randomly assign values. Show the array with assigned...
on 17:03 Sat 11 May < 00 194843... 19871 II B itsSUNPI is live! + Hi mates im Alive chating and all the fun stuf that we do O COME & GET ME! -- Sunpi FE now Untitled... HYPE RESULTS T Potential...
The financial statements of Aritzia Inc. are presented in Appendix A at the end of this textbook. Instructions a. What title does Aritzia use for its income statement? What title does Aritzia use for...
Compare and contrast debt financing and equity financing as ways of starting a new business. Does one have an overall advantage over the other? What situation is more favorable to the use of debt...
If you were given complete authority in the matter, how would you propose that accounting principles or standards should be developed and enforced?
One writer recently noted that 99.4 percent of all companies prepare statements that are in accordance with GAAP . Why then is there such concern about fraudulent financial reporting?
One writer recently noted that 99.4 percent of all companies prepare statements that are in accordance with GAAP . Why then is there such concern about fraudulent financial reporting?
Choose two stocks from the same industry to minimize the influence of other confounding factors. You choose the industry that you are relatively more familiar with, and then estimate the implied...
why should Undertake research to review reasons for previous profit or loss?
A pension fund's liabilities has a PV01 of $200 million. The plan has $100 billion of assets with a weighted average modified duration of 8. The highest duration bond that the plan can invest in has...

During the current year, merchandise is sold for $45,870,000. The cost of the merchandise sold is $33,026,000.

Question:

Step by Step Answer:

a Calculation of gross profit Gross profit Sales Cost of goods sold 45870000 33026000 128440...View the full answer

Accounting

Students also viewed these Business questions