Which of the following represents the components of the income statement for a service business? Select one: a. Service Revenue – Operating Expenses = operating income b. Sales Revenue – Cost of Goods Manufactured = gross profit c. Sales Revenue – Cost of Goods Sold = gross profit d. Service Revenue – Cost of Goods Purchased = gross profit

explain the image provided the Gross profit margin, Return on sales, return on assets, return on equity and give recommendation

True/False The net profit margin ratio is calculated by dividing net sales by net income.

First step - you need to understand each individual components of the income statement (also called a Profit & Loss Statement or P&L Statement):  Sales (Revenue)  The sales figure represents the amount of revenue generated by the business. It is calculated as the total of the number of units sold multiplied by the selling price per unit.  The amount recorded here is the total sales, minus any product returns or sales discounts. Cost of Goods Sold This number represents the costs directly associated with making or acquiring your products. Costs include materials purchased from outside suppliers used in the manufacture of your product, as well as any internal expenses directly expended in the manufacturing process. In a service business where you, as the owner, are the only expense in supplying the service, and you do not pay yourself a salary beyond the company profits, your service expense may be zero. However, in a service business where you pay yourself a salary or have…

Which is the formula for Gross Margin ratio? Seleccione una: a. Cost of Sales / Gross Revenues b. Revenues / Gross Expenses c. Revenues - Expenses d. Gross Profit / Sales Revenues e. Net Margin + Expenses / Gross Revenues

Calculate Gross profit ratio

In vertical analysis, the relevant base for cost of goods sold is which of the following?   Multiple Choice   Sales revenue   Total credit sales   Total assets   Total stockholders’ equity

Which ratio can provide an indication of the salability of the company's products?   Question 20 options:   A)  Current ratio   B)  Account receivable turnover   C)  Gross profit margin   D)  Inventory turnover

The COGS is estimated by deducting the gross profit from sales revenue. Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales price and how do you convert the gross profit % based upon cost to gross profit % based upon selling price?