Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 13, Problem 5ME
To determine
Introduction:
Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.
To calculate:
The amount of cost of goods sold.
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Determining gross profit
During the current year, merchandise is sold for $8,780,000. The cost of the goods sold is $5,531,400. This information has been collected in the Microsoft
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Open spreadsheet
a. What is the amount of the gross profit? Round your answer to the nearest dollar.
b. Compute the gross profit percentage (gross profit divided by sales). Round your answer to the nearest whole number.
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542 PM
5/3/2021
Your campus computer store reported Sales Revenue of $168,000. The company’s gross profit percentage was 60.0 percent. What amount of Cost of Goods Sold did the company report?
A company reported the following:
Cost of Goods Sold
General, Selling, and Administrative Expenses
Income Tax Expense
Inventory
Net Income
Sales Revenue
Sales Discounts
Sales Returns & Allowances
What is the amount of gross profit?
Multiple Choice
$108,360
$98,950
$121,000
$203, 200
53,120
3,920
16,500
26,080
292,000
3,040
2,640
Chapter 13 Solutions
Managerial Accounting
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - What is ratio analysis? Why is it useful?
Ch. 13 - What benchmarks are commonly used for interpreting...Ch. 13 - Prob. 5QCh. 13 - Why are some analyses called horizontal and others...Ch. 13 - Slow Cellar’s current ratio increased from 1.2 to...Ch. 13 - From last year to this year. Colossal Company’s...Ch. 13 - From last year to this year, Berry Barn reported...Ch. 13 - Prob. 10Q
Ch. 13 - Prob. 1MCCh. 13 - Prob. 2MCCh. 13 - Prob. 3MCCh. 13 - Prob. 4MCCh. 13 - Prob. 5MCCh. 13 - Prob. 6MCCh. 13 - Prob. 7MCCh. 13 - Prob. 8MCCh. 13 - Prob. 9MCCh. 13 - Prob. 1MECh. 13 - Prob. 2MECh. 13 - Prob. 3MECh. 13 - Prob. 4MECh. 13 - Prob. 5MECh. 13 - Prob. 6MECh. 13 - Prob. 7MECh. 13 - Prob. 8MECh. 13 - Prob. 9MECh. 13 - Prob. 10MECh. 13 - Prob. 11MECh. 13 - Prob. 12MECh. 13 - Prob. 13MECh. 13 - Prob. 14MECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Computing and Interpreting Liquidity Ratios...Ch. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Analyzing the Impact of Selected Transactions on...Ch. 13 - Prob. 15ECh. 13 - Prob. 1.1GAPCh. 13 - Prob. 1.2GAPCh. 13 - Prob. 2.1GAPCh. 13 - Prob. 2.2GAPCh. 13 - Prob. 2.3GAPCh. 13 - Prob. 2.4GAPCh. 13 - Prob. 2.5GAPCh. 13 - Prob. 2.6GAPCh. 13 - Prob. 2.7GAPCh. 13 - Prob. 2.8GAPCh. 13 - Prob. 3.1GAPCh. 13 - Prob. 3.2GAPCh. 13 - Prob. 3.3GAPCh. 13 - Prob. 4.1GAPCh. 13 - Prob. 4.2GAPCh. 13 - Prob. 4.3GAPCh. 13 - Prob. 5.1GAPCh. 13 - Prob. 5.2GAPCh. 13 - Prob. 5.3GAPCh. 13 - Prob. 5.4GAPCh. 13 - Prob. 6.1GAPCh. 13 - Prob. 6.2GAPCh. 13 - Prob. 7GAPCh. 13 - Prob. 1.1GBPCh. 13 - Prob. 1.2GBPCh. 13 - Prob. 2.1GBPCh. 13 - Prob. 2.2GBPCh. 13 - Prob. 2.3GBPCh. 13 - Prob. 2.4GBPCh. 13 - Prob. 2.5GBPCh. 13 - Prob. 2.6GBPCh. 13 - Prob. 2.7GBPCh. 13 - Prob. 2.8GBPCh. 13 - Prob. 3.1GBPCh. 13 - Prob. 3.2GBPCh. 13 - Prob. 3.3GBPCh. 13 - Prob. 4.1GBPCh. 13 - Prob. 4.2GBPCh. 13 - Prob. 4.3GBPCh. 13 - Prob. 5.1GBPCh. 13 - Prob. 5.2GBPCh. 13 - Prob. 5.3GBPCh. 13 - Prob. 5.4GBPCh. 13 - Prob. 6.1GBPCh. 13 - Prob. 6.2GBPCh. 13 - Prob. 7GBP
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- COMPUTING GROSS PROFIT The following data were taken from the accounts of Burnside Bedknobs, a retail business. Determine the gross profit.arrow_forwardYour campus computer store reported Sales Revenue of $175,000. The company's gross profit percentage was 65 percent. What amount of Cost of Goods Sold did the company report? Cost of Goods Soldarrow_forwardUsing the accounts and amounts below, calculate Income from Operations: Account Amount $173,570 Sales Revenue Net Sales Sales Returns and Allowances Cost of Goods Sold Operating Expenses 102,735 36,023 31,211 34,693arrow_forward
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- Required information [The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $169,000 Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expenses 18,940 248,000 43,600 19,400 7,290 41,800 Sales Returns and Allowances Salaries and Wages Expense 2-a. What was the amount of gross profit? 2-b. What was the gross profit percentage? (Round your percentage to 1 decimal place.) 2-a. Gross Profit 2-b. Gross Profit Percentage %arrow_forwardIncome Statement and Accounts for Merchandiser For the fiscal year, sales were $6,580,000 and the cost of goods sold was $3,816,000. a. What was the amount of gross profit?$ b. If total operating expenses were $992,000, could you determine net income? c. Customer Refunds Payable is a(n) account. What is its normal balance? d. Estimated Returns Inventory is a(n) account. What is its normal balance?arrow_forwardThe details of a Retail Merchandise business are: Sales revenues are RO 80,000 cost of goods sold is RO 30,000 and Total Selling expenses are RO 40,000, Interest revenue RO 500 and Interest expense RO 300. What will be the Net Profit assuming that the business uses Simple step income statement? a. 10,200 b. 9,900 c. 10,000 d. 10,100arrow_forward
- questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expense Sales Returns and Allowances Salaries and Wages Expense E6-17 (Algo) Part 2 2-a. What was the dollar amount of gross profit? 2-b. What was the gross profit percentage? (Round your percentage to 1 decimal place.) 2-a. Gross Profit 2-b. Gross Profit Percentage MERCA Prev % 78 of 13 $ 171,000 19,530 252,000 44,400 19,600 7,410 42,600 Next > #arrow_forwardA company has the following selected account balances: Sales Sales Discounts Sales Returns and Allowances Sales Salaries Expense Store Supplies Expense Advertising Expense Cost of Goods Sold $ 250,000 1,500 2,300 56,000 15,000 8,000 125,000 What is the gross profit that would appear on a multiple-step income statement: $121,200 $167,200 $42,200 $246,200arrow_forwardCalculate the missing information based on the format of the income statement. Cost of Goods Sold Operating Expenses Net Sales $336,500 Submit Answer $132,100 Gross Margin ($) $107,000 $ Net Profit ($)arrow_forward
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