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a Express the ratio of the Gross Profit of Year 1 to the Cost of Goods Sold ar 2 in Fract

a Express the ratio of the Gross Profit of Year 1 to the Cost of Goods Sold ar 2 in Fract

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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Below are the Income Statement of ABC Company for two consecutive years. ABC Company Net Sales Cost of Goods Soldxs3 Year 1 P 5,000,000 880,000 Year 2 P 6,500,000 950,000
Transcribed Image Text:Below are the Income Statement of ABC Company for two consecutive years. ABC Company Net Sales Cost of Goods Soldxs3 Year 1 P 5,000,000 880,000 Year 2 P 6,500,000 950,000
Gross Profit Less: Administrative Expense Selling and Operating Expense Income before taxes Income Tax Expense Income After Taxes Find the following: 550, 000 95,000 20,000 600,000 105,000 40,000 3.455.000 4,805,000 691, 000 961, 000 P2, 764, 000 P 3,844, 000 a. Express the ratio of the Gross Profit of Year 1 to the Cost of Goods Sold of Year 2 in Fraction b. What fraction can you arrive at if you compare the Administrative Expenses of Year 1 to its Year 2? c. What would be the difference if you subtract your answer from letter a to your answer from letter b? d. What fraction can you arrive if you will compare the Selling and Operating taxes of Year 2 to the Net Sales of Year 1? e. Express the ratio of Year 1 Selling and Operating Expense to the Administrative Expense of the same year in fraction form f. What would be the product of the answers for letters d and e?
Transcribed Image Text:Gross Profit Less: Administrative Expense Selling and Operating Expense Income before taxes Income Tax Expense Income After Taxes Find the following: 550, 000 95,000 20,000 600,000 105,000 40,000 3.455.000 4,805,000 691, 000 961, 000 P2, 764, 000 P 3,844, 000 a. Express the ratio of the Gross Profit of Year 1 to the Cost of Goods Sold of Year 2 in Fraction b. What fraction can you arrive at if you compare the Administrative Expenses of Year 1 to its Year 2? c. What would be the difference if you subtract your answer from letter a to your answer from letter b? d. What fraction can you arrive if you will compare the Selling and Operating taxes of Year 2 to the Net Sales of Year 1? e. Express the ratio of Year 1 Selling and Operating Expense to the Administrative Expense of the same year in fraction form f. What would be the product of the answers for letters d and e?
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