The following information was taken from Logsden Manufacturing's trial balances as of December 31, 2018, and December 31, 2019. 12/31/2019 12/31/2018 Accounts receivable $14,000 $18,000 Accounts payable 22,000 15,000 Cost of goods sold 144,000 127,000 Sales 279,000 239,000 Sales returns 12,000 10,000 Retained earnings 47,000 16,000 Dividends 3,000
The following information was taken from Logsden Manufacturing's trial balances as of December 31, 2018, and December 31, 2019. 12/31/2019 12/31/2018 Accounts receivable $14,000 $18,000 Accounts payable 22,000 15,000 Cost of goods sold 144,000 127,000 Sales 279,000 239,000 Sales returns 12,000 10,000 Retained earnings 47,000 16,000 Dividends 3,000
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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The following information was taken from Logsden Manufacturing's
| 12/31/2019 | 12/31/2018 | |||
| Accounts receivable | $14,000 | $18,000 | ||
| Accounts payable | 22,000 | 15,000 | ||
| Cost of goods sold | 144,000 | 127,000 | ||
| Sales | 279,000 | 239,000 | ||
| Sales returns | 12,000 | 10,000 | ||
| Retained earnings | 47,000 | 16,000 | ||
| Dividends | 3,000 | 2,000 | ||
| Income from operations | 25,000 | 16,000 | ||
| Net income | 19,000 | 18,000 |
Required:
1. Calculate the gross profit margin and operating margin percentage for 2019. Enter your answer as percentage, rounded to two decimal places (e.g. .0248563 to 2.49%).
| 2019 | |
| Gross profit margin percentage | % |
| Operating margin percentage | % |
2. Assuming that all of the operating expenses are fixed (or, won't change as sales increase or decrease), what will be the operating margin percentage if sales increase by 25%? Round your answer to two decimal places.
| Operating margin percentage | % |
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