Business
Accounting
Worden Corporation has the following income statement for the year:

Worden Corporation has the following income statement for the year: Required: a. Calculate (1) Gross margin (in

Question:

Worden Corporation has the following income statement for the year:

Required:
a. Calculate
(1) Gross margin (in dollars).
(2) Gross margin percentage.
(3) Profit margin percentage.
b. Interpret the results of the above calculations.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

Transcribed Image Text:

Income Statement For the Year Ended December 31 Sales revenues Expenses: $85,000 Cost of goods sold Selling and administrative expenses Income taxes $45,000 25,000 6,000 576,000 9,000 Total expenses Net Income

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a 1 2 3 Sales Cost of goods sold Gross margin 85000 45000 40000 47 percent gross margin 4000...View the full answer

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Mugdha Sisodiya

My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional. Since 2012 I am providing home tutions.

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Authors: Robert Anthony, David Hawkins, Kenneth Merchant

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Question Posted: Apr 29, 2016 12:20 PM

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