Brief Exercise 5-9

Assume Kader Company has the following reported amounts: Sales revenue $1,280,100, Sales returns and allowances $37,650, Cost of goods sold $828,300, and Operating expenses $276,100.

(a)Compute net sales.

Net sales

$

(b)Compute gross profit.

Gross profit

$

(c)Compute income from operations.

Income from operations

$

(d)Compute the gross profit rate.(Round answer to 1 decimal place, e.g. 25.2%.)

Gross profit rate

%