Question
As a shareholder of Perry Jackson Industries, a manufacturer of DVD players, you are interested in comparing gross profits over a 3-year period. Calculate the
As a shareholder of Perry Jackson Industries, a manufacturer of DVD players, you are interested in comparing gross profits over a 3-year period. Calculate the gross profit percentage for years 2016, 2015, and 2014 using the income statement items below (in thousands). Interpret your results.
|
| 2016 | 2015 | 2014 |
| Net sales | $20,640 | $21,880 | $21,540 |
| Cost of goods sold | 14,830 | 14,044 | 13,684 |
| Gross Profit | $5,810 | $7,836 | $7,856 |
2016 =
Gross Profit %= Gross Profit on Sales/ Net Sales
2015 =
2014 =
INTERPRET YOUR RESULTS:
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Auditing
Authors: Thomas D. Hubbard, J. R. Johnson, Steve Johnson, Joel D. Hubbard
6th Edition
0873932609, 9780873932608
