Question

Business Course Gross Profit Percentage The following financial data is from Brenner Instruments' financial statements (thousands of dollars, except earnings per share.) 2019 Sales revenue Cost of goods sold Net income Dividends Earnings per share $210,000 125,000 8,300 2,600 4.15 Support

Answer 1

Answer is given below

Gross Profit ratio Gross profit Sales $85,000 $210,000 40.5% Sales Cost of Goods Sold Gross profit $210,000 $125,000 $85,000 Industry Ratio 42.8 percent Brenner instruments' ratio is lower than then industry average $1,850,000 $928,000 $922,000 $145,000 $174,000 JEFFERSON COMPANY Multi-Step Income Statement Sales Cost of Goods sold Gross profit Operating Expenses Administrative expense Selling expense Operating Income Interest Expense Income from Continuing Operations before taxes Less: Income taxes Net Income from Continuing Operations Discontinued Operations Loss from operations of discontinued segment Gain on disposal of discontinued segment Net Income $319,000 $603,000 $14,000 $589,000 $125,000 $464,000 $98,000 $75,000 $23,000 $441,000 $1,850,000 JEFFERSON COMPANY Single-Step Income Statement Sales Less :Operating Expenses Cost of Goods sold $928,000 Administrative expense $145,000 Selling expense $174,000 Interest Expense $14,000 Income Taxes $125,000 Net Income from Continuing Operations Discontinued Operations Loss from operations of discontinued segment $98,000 Gain on disposal of discontinued segment $75,000 Net Income $1,386,000 $464,000 $23,000 $441,000