A company shows the following balances: Sales Revenue $1,000,000 Sales Returns and Allowances 175,000 Sales Discounts 25,000 Cost of Goods Sold 560,000 What is the gross profit rate? a. 56% b. 70% c. 44% d. 30% Aaron Corporation is a merchandising company. Selected account balances are listed below. Calculate the gross profit margin. Sales $250,000 Purchases $112,500 Beginning Inventory = $8,000 Ending Inventory = $15,000 Operating Expenses = $74,000 Income Tax Expense = $5,000 Beginning Retained Earnings = $26,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company shows the following balances:
Sales Revenue $1,000,000
Sales Returns and Allowances 175,000
Sales Discounts 25,000
Cost of Goods Sold 560,000
What is the gross profit rate?
a. 56%
b. 70%
c. 44%
d. 30%
Aaron Corporation is a merchandising company.
Selected account balances are listed below.
Calculate the gross profit margin.
Sales $250,000
Purchases
$112,500
Beginning Inventory = $8,000
Ending Inventory = $15,000
Operating Expenses = $74,000
Income Tax Expense = $5,000
Beginning Retained Earnings = $26,500
Transcribed Image Text:A company shows the following balances: Sales Revenue $1,000,000 Sales Returns and Allowances 175,000 Sales Discounts 25,000 Cost of Goods Sold 560,000 What is the gross profit rate? a. 56% b. 70% c. 44% d. 30% Aaron Corporation is a merchandising company. Selected account balances are listed below. Calculate the gross profit margin. Sales $250,000 Purchases $112,500 Beginning Inventory = $8,000 Ending Inventory = $15,000 Operating Expenses = $74,000 Income Tax Expense = $5,000 Beginning Retained Earnings = $26,500
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