A company shows the following balances: $2,500,000 Sales Revenue Sales Returns and 450,000 Allowances Sales Discounts 50,000 Cost of Goods Sold 1,400,000 What is the gross profit percentage? O a) 44% O b) 56% O c) 70% O d) 30%

A company shows the following balances: $2,500,000 Sales Revenue Sales Returns and 450,000 Allowances Sales Discounts 50,000 Cost of Goods Sold 1,400,000 What is the gross profit percentage? O a) 44% O b) 56% O c) 70% O d) 30%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company shows the following balances:
$2,500,000
Sales Revenue
Sales Returns and
450,000
Allowances
Sales Discounts
50,000
Cost of Goods Sold
1,400,000
What is the gross profit percentage?
a) 44%
O b) 56%
c) 70%
d) 30%

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