A company reported a sale revenue for $700,000. The gross profit margin is 60% and the selling expenses are 10% of the sales revenue. The general and administrative expenses are $77,000 and the income tax rate for the current year is 25%. Compute the net income. a. $99,750 b. $204,750 c. $273,000 d. $262,500

A company reported a sale revenue for $700,000. The gross profit margin is 60% and the selling expenses are 10% of the sales revenue. The general and administrative expenses are $77,000 and the income tax rate for the current year is 25%. Compute the net income. a. $99,750 b. $204,750 c. $273,000 d. $262,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Determining gross profit During the current year, merchandise is sold for $8, 100,000. The cost ofthe goods sold is $4,698,000. a. What is the amount of the gross profit?b. Compute the gross profit percentage (gross profit divided by sales).c. Will the income statement always report a operating income? Explain.
Calculate the net profit for a company given the following information: Total revenue = $100,000, Cost of goods sold = $40,000, Operating expenses = $25,000, and Taxes = $10,000.
Citrine Company reported the following on its income statement: Income before income taxes $500,000 Income tax expense 100,000 Net income $400,000 An analysis of the income statement revealed that interest expense was $50,000. Citrine Company's times-interest-earned ratio was: a. 18. b. 5. c. 9. d. 11.
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of goods sold (2,120,000) (60.0) Gross profit $1,880,000 40.0 % Selling expenses $(1,080,000) (24.0) % Administrative expenses (640,000) (14.0) Total operating expenses $(1,720,000) (38.0) % Operating income $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) (2.0) Income before income tax expense $200,000 3.0 % Income tax expense (80,000) (2.0) Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the…
If a company has sales revenue of $631000, net sales of $500000, and cost of goods sold of $385000, the gross profit rate is 77%. 61%. 39%. 23%.
The following information is available for Tamarisk Corp. for the year ended December 31, 2022. Other revenues and gains $23,800 Other expenses and losses 4,000 Cost of goods sold 292,000 Sales discounts 4,600 Sales revenue 760,000 Operating expenses 221,000 Sales returns and allowances 10,800 Prepare a multiple-step income statement for Tamarisk Corp. The company has a tax rate of 25%.
A company has net income of $300,000, net sales of $2,500,000, and total assets of $2,000,000. Its return on total assets equals a. 6.7%. c. 8.3%. e. 15.0%. b. 12.0%. d. 80.0%.
Oriole Corporation reported net sales of $166,000, cost of goods sold of $99,600, operating expenses of $36,200, other expenses of $13,600, net income of $16,600. Calculate the following values: (Round answers to 0 decimal places, e.g. 15%.) 1. 2. Profit margin Gross profit rate % %
The balance sheet of ATLF, Inc. reports total assets of $950,000 and $1,050,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively. What is ATLF's profit margin? Select one: a. 8% b. 15% c. 10% d. 80% e. 12.5%
A company reports the following amounts at the end of the year: Total sales revenue = $560,000; sales discounts = $17,000; sales returns = $34,000; sales allowances = $20,000. Compute net revenues. Net revenues
Corrigan Corporation had beginning inventory of $20,000 and ending inventory of $24,000. Itsnet sales were $164,000 and net purchases were $81,000.10. Corrigan’s gross profit for the period isa. $79,000.b. $83,000.c. $87,000.d. $164,000.
.