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kykrilka [37]
3 years ago
11

etermining Gross Profit During the current year, merchandise is sold for $990,000. The cost of the merchandise sold is $693,000.

a. What is the amount of the gross profit? $fill in the blank 1 b. Compute the gross profit percentage (gross profit divided by sales). fill in the blank 2 % c. When will the income statement necessarily report a net income?
Business
1 answer:
otez555 [7]3 years ago
6 0

Answer:

Results are below.

Explanation:

<u>A: To calculate the gross profit, we need to use the following formula:</u>

Gross profit= sales - cost of goods sold

Gross profit= 990,000 - 693,000

Gross profit= $297,000

B: <u>Now, the gross profit percentage:</u>

Gross profit percentage= (gross profit / sales)*100

Gross profit percentage= (297,000 / 990,000)*100

Gross profit percentage= 30%

C: F<u>inally, a net income is reported in the income statement at the moment of the sale</u>. It doesn't matter if the sale was paid or not.

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The change in Accounts Receivable will be shown on the statement of cash​ flows as:

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Net income is calculated by deducting from total revenue the cost of sales, operational expenses, depreciation, interest, amortization, and taxes.

Change in Accounts Receivable:-  

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This implies Cash outflow from Operating Activities.

Thus it should be subtracted from Net Income under the Operating Activities section.

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4 years ago
Yellco Inc., a toy manufacturer, provided the following information: Domestic unit sales price $50 Unit manufacturing costs: Var
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Answer:

$540,000

Explanation:

Calculation for The company's differential revenue from the acceptance of the offer

Using this formula

Differential revenue = Number of units of export order * Offer price per unit

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3 years ago
M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and
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The quanitity per order that minimizes the cost is 137.84 units.

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