FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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General accounting question
Transcribed Image Text:Mega skateboard supplier had net sales of $2.8
million, its cost of goods sold was $1.6 million,
and its net income was $0.9 million. Its gross
margin ratio equals what?
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- Swank Clothiers had sales of $383,000 and cost of goods sold of $260,000. What is the gross profit margin (ratio of gross profit to sales)? b. If the average firm in the clothing industry had a gross profit of 25 percent? how is the firm doing? SOLVE BOTH QUESTIONSarrow_forwardDTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million. a. If the profit margin is 6 percent, what is the net income? b. What is the ROA? c. What is the ROE?arrow_forwardCalculate it's gross margin ratio?arrow_forward
- Suppose Austin Sound had sales of $450,000 and sales returns of $55,000. Cost of goods sold was $176,000. How much gross profit did Austin Sound report?arrow_forwardCalculate it's gross profit?arrow_forwardA company’s net sales are $675,000, its cost of goods sold is $459,000, and its net income is $74,250. Its gross margin ratio equals a. 32%. c. 47%. e. 34%. b. 68%. d. 11%.arrow_forward
- Calculate it's gross margin ratio?arrow_forwardCalculate the net income for a company given the following information: Sales revenue = $100,000, Cost of goods sold = $40,000, Operating expenses = $20,000, Interest expense = $5,000, and Income tax rate = 25%.arrow_forwardEarning after taxes of $25,000?arrow_forward
- Need Help Please solve this onearrow_forwardCupery Co. has net sales of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000. What is its gross profit and its gross profit rate?arrow_forwardThe Sugar Shack reports net income of $250,000, sales of $7,500,000, and average assets of $730,000. What is the profit margin?arrow_forward
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