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  A = B / (1 + B) B  A = (1 + B) / B C  A = (1 − B) / B D  A = B / (1 − B)

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 32MCQ
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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  A = B / (1 + B)
B  A = (1 + B) / B
C  A = (1 − B) / B
D  A = B / (1 − B)
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