Sheridan Company reported net sales $700,000; cost of goods sold $455,000; operating expenses $183,750; and net...

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Answer 1

Answer #1

Net sales = $700,000

Less: Cost of goods sold = ($455,000)

Gross Margin = $245,000

Less: Operating Expenses = ($183,750)

Income before tax = $61,250

Net Income (Given) = $59,500

Profit Margin = Net income / Net sales = $59,500 / $700,000

Profit Margin = 0.085 or 8.50%

Profit Margin = 8.50%

Gross Profit rate = Gross Margin / Net sales = $245,000 / $700,000 = 0.35

Gross Profit rate = 35%

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Answer 2

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