7. Consider the following: Code: A= Gross Profit to Net Sales Ratio B= Gross Profit to Cost of Goods Sold Ratio Which equation is correct? a. B =A b. B = 1 + A A c. B = 1 - A A d. B = 1 + A

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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7. Consider the following:
Code:
A= Gross Profit to Net Sales Ratio
B= Gross Profit to Cost of Goods Sold Ratio
Which equation is correct?
B =
A
a.
1 - A
b.
B = 1 + A
A
с.
B = 1 - A
A
d. B =
A
1 + A
Transcribed Image Text:7. Consider the following: Code: A= Gross Profit to Net Sales Ratio B= Gross Profit to Cost of Goods Sold Ratio Which equation is correct? B = A a. 1 - A b. B = 1 + A A с. B = 1 - A A d. B = A 1 + A
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