Question
Calculate net sales, gross profit, and gross profit ratio for each of the following situations. Round the gross profit ratio figure to the nearest whole
Calculate net sales, gross profit, and gross profit ratio for each of the following situations. Round the gross profit ratio figure to the nearest whole percent.
| a | b | c | d | |
| Sales | $170,000 | $450,000 | $225,000 | $330,000 |
| Sales discounts | 5,000 | 3,000 | 11,000 | 2,000 |
| Sales returns and allowances | 1,100 | 2,100 | 4,000 | 11,500 |
| Cost of goods sold | 133,000 | 301,000 | 110,000 | 220,000 |
a. Which situation has the highest net sales?
b. Which situation has the highest gross profit ratio?
Step by Step Solution
3.37 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the net sales we need to subtract the sales discounts and sales returns and allowances ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
