During the current year, merchandise is sold for $31,850,000. The cost of the merchandise sold is $24,206,000.

Question

Question

om During the current year, merchandise is sold for $31,850,000. The cost of the merchandise sold is $24,206,000. a. What is

a. What is the amount of the gross profit?

b. Compute the gross profit percentage (gross profit divided by sales).

c. When will the income statement necessarily report a net income?

Answer 1

✔ Recommended Answer

Answer #1

Answer a. - sales -. cost = gross profit

$ 31,850,000. - $ 24,206,000. =. 76,44,000

Answer b. - gross profit / sales * 100. = Gross profit %

7,644,000 / 31,850,000 * 100 = 24 %

Answer c. - When operating expense are less than gross profit

Answer 2

Answer #2

If the operating expenses are less than gross profit

source: Chapter 6 accounting 1

answered by: Fabieldyne jean

Answer 3

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