Question

Check Year 1 Year 2 Sales S130.000 $170,000 Cost of sales 105.000 137.000 Gross profit $ 25,000 IS 33.000 Using the above inf
0 0
Add a comment Improve this question Transcribed image text
Answer #1

(1) Increase or decrease in cost of sales = (Sales in year 2 - Sales in year 1) / Sales in year 1

= ($137000 - $105000)/$105000 = 30.5%

Option (d) is correct

(2) Buys land for $50000 for cash

Land Increase & Cash decrease

Hence no effect on asset

Add a comment
Know the answer?
Add Answer to:
Check Year 1 Year 2 Sales S130.000 $170,000 Cost of sales 105.000 137.000 Gross profit $...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Return on Assets Net Sales Gross Profit Margin Cost of Goods Operating Net Profit Before Tax...

    Return on Assets Net Sales Gross Profit Margin Cost of Goods Operating Net Profit Before Tax PI Expense Accounts Receivable Return On Assets + Merchandise Inventory Total Current Assets Asset Turnover Cash Total Assets Fixed Assets Other Current Assets Use the charts on the following page to calculate Net Profit Margin % for each scenario: Scenario 1 Scenario 2 Income Statement Income Statement Sales Sales Gross Sales $200,000 Gross Sales $100,000 Promotional Allowances $25,000 Promotional Allowances $15,000 Customer Returns -$15,000...

  • Smithsborough, Inc. had the following profit and loss statement for the year ending 2009 $50,000,000 Sales Cost of goods sold Gross Margin Marketing Expenses 10,000.000 40,000,000 Sales expenses...

    Smithsborough, Inc. had the following profit and loss statement for the year ending 2009 $50,000,000 Sales Cost of goods sold Gross Margin Marketing Expenses 10,000.000 40,000,000 Sales expenses $10,000,000 Promotion expenses 4.000,000 14,000,000 General and Administrative Expenses Managerial salaries and expenses for the marketing function $1,000,000 Indirect overhead 6.000,000 7000,000 Net profit before income tax $19,000,000 Determine the following ratios: a. gross margin percentage b. net profit percentage c. operating expense percentage d. net marketing contribution e. marketing return on...

  • Required information PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage...

    Required information PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage (LO 6-4, LO 6-5) [The following information applies to the questions displayed below.] Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $500,000 erchandise for cash (cost of merchandise $ 224,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of...

  • Begin by calculating the gross profit for each​ year, then prepare a horizontal analysis of revenues...

    Begin by calculating the gross profit for each​ year, then prepare a horizontal analysis of revenues and gross profitlong dashboth in dollar amounts and in percentageslong dashfor 2019 and 2018. ​(Enter amounts in millions as provided to you in the problem statement. Round the percentages to one decimal​ place, X.X%. Use a minus sign or parentheses to indicate a​ decrease.) Variline Corp. Income Statement - (Partial) Years Ended December 31, 2019 and 2018 (Amounts in millions) 2019 2018 2017 Revenues...

  • Walgreens Boots Alliance’s Sales, Cost of Goods Sold, and Gross Profit The following information was summarized...

    Walgreens Boots Alliance’s Sales, Cost of Goods Sold, and Gross Profit The following information was summarized from the consolidated balance sheets of Walgreens Boots Alliance, Inc. and Subsidiaries (the company created with the combination of Walgreens and Boots Alliance) as of August 31, 2015 and 2014 and the consolidated statements of earnings for the years ended August 31, 2015 and 2014. All amounts are from Walgreens Boots Alliance’s 2015 Form 10-K. (millions of dollars) 2015 2014 Accounts receivable, net $6,849...

  • Required information CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross...

    Required information CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $268,900 a. Sold merchandise for cash (cost of merchandise $149, 510). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund...

  • Sales $7000 3000 Less: Cost of goods sold Gross Profit Less: Operating expenses Selling expenses General...

    Sales $7000 3000 Less: Cost of goods sold Gross Profit Less: Operating expenses Selling expenses General and administrative expenses Lease expenses Depreciation expenses Total operating expenses Operating profits Less: Interest expenses Net profit before taxes Less: Taxes (30%) Net profit after taxes Less: Preferred stock dividends Earnings available for common stockholders Less: Common stock dividends Retained earnings 2220 200 2020 500 2013 2012 2013 Assets Current Assets Cash Account Receivable Inventory Total current assets 980 800 500 2280 2200 Liabilities...

  • Determining Gross Profit During the current year, merchandise is sold for $11,750,000. The cost of the...

    Determining Gross Profit During the current year, merchandise is sold for $11,750,000. The cost of the goods sold is $7,050,000. a. What is the amount of gross profit? $ b. Compute the gross profit percentage (gross profit divided by sales). Round to the nearest whole number.    % c. When will the income statement report net income? Can you provide step by step. Thank you

  • Financial information is found below for Trinity Company. What is the gross profit? Sales Revenue: $192,000...

    Financial information is found below for Trinity Company. What is the gross profit? Sales Revenue: $192,000 Sales Returns and Allowances: ??? Net Sales Revenue: $162,000 Cost of Goods Sold: $55,500 Gross Profit:????? Operating Expenses: $35,000 Net Income: ????? a) $162,000 b) $106,500 c) $71,500 d) $65,000 Question 4 (1 point) Performing a service for a client on account will a) increase one asset and decrease another asset b) decrease an asset and decrease a liability. c) increase an asset and...

  • 2015 2016 Sales 12,532 19,080 9.722 15.134 2,810 3,946 Cost of sales Gross Profit Depreciation Profit...

    2015 2016 Sales 12,532 19,080 9.722 15.134 2,810 3,946 Cost of sales Gross Profit Depreciation Profit before tax 380 384 2,450 3,562 Taxation 1,274 1,852 1,710 Profit after tax 1,176 Dividends Interim(Paid) Final 520 584 Profit for the year Draft balance sheets as at 31-12 are as follows: 2015 2016 k NON CURREN ASSETS Land and Buildings a cost 1600 Plant 2.914 2.000 4.178 380 8.556 4514 Patents Total Non Current Assets CURENT ASSETS Inventory Receivables 984 2.268 4.582 7...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT