Homework Answers
11.a. the percent of sales available to pay operating expenses, interest expense and income taxes.
Gross margin = (sales - cost of goods sold) / sales *100.
Gross margin is the percentage of sales that will be used for paying operating expenses, interest expense and income taxes.
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QUESTION 11 1. What does the gross margin measure? a. The percent of sales available to...
QUESTION 9 1. What does the operating expense percentage measure? a. The amount of profit left...
QUESTION 9 1. What does the operating expense percentage measure? a. The amount of profit left in a business after deducting cost of goods sold from b. The relative amount of operating expenses (excluding financing costs) incurred comparte goods sold. c. The percentage of sales incurred for operating expenses and income taxes d. The percentage of sales absorbed by operating expenses, excluding interest
Gross Profit margin = Gross Profit / Total Revenue, Gross Profit = Sales - Cost of...
Gross Profit margin = Gross Profit / Total Revenue, Gross Profit = Sales - Cost of Goods Sold. Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) - Operating Expenses - Depreciation - Amortization. However, for a hospital, there is no "Cost of Goods Sold", so how to calculate Gross Profit margin and Operating Profit ?
Saved points QUESTION 2 Which of the following defines gross profit? a. The amount remaining from...
Saved points QUESTION 2 Which of the following defines gross profit? a. The amount remaining from the sales value after deducting interest expense. b. The amount remaining from the sales value after deducting overhead costs c. The amount remaining from the sales value after deducting the cost of goods sold. d. The amount remaining from the sales value after deducting depreciation and Amortization
Operating income equals: A) Gross margin - selling expenses B) Sales revenue - cost of goods...
Operating income equals: A) Gross margin - selling expenses B) Sales revenue - cost of goods sold C) Sales revenue - selling and administrative expenses D) Sales revenue - cost of goods sold - selling and administrative expense
Exercise 11-15 Using contribution margin format income statement to measure the magnitude of operating leverage LO...
Exercise 11-15 Using contribution margin format income statement to measure the magnitude of operating leverage LO 11-3, 11-4 The following income statement was drawn from the records of Munoz Company, a merchandising firm: MUNOZ COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (6,500 units x $167) Cost of goods sold (6,500 units X $85) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units X $4)...
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...
(Profitability and capital structure analysis) In the year just ended, Callaway Lighting had sales of $5,210,000...
(Profitability and capital structure analysis) In the year just ended, Callaway Lighting had sales of $5,210,000 and incurred cost of goods sold equal to $4,540,000. The firm's operating expenses were $134,000 and its increase in retained earnings was $44,000 for the year. There are currently 95,000 common stock shares outstanding and the firm pays a $2.542 dividend per share. The firm has $1,180,000 in interest-bearing debt on which it pays 8.2 percent interest. a. Assuming the firm's earnings are taxed...
(Profitability and capital structure analysis) In the year just ended, Callaway Lighting had sales of $5,210,000...
(Profitability and capital structure analysis) In the year just ended, Callaway Lighting had sales of $5,210,000 and incurred cost of goods sold equal to $4,540,000. The firm's operating expenses were $134,000 and its increase in retained earnings was $44,000 for the year. There are currently 95,000 common stock shares outstanding and the firm pays a $2.542 dividend per share. The firm has $1,180,000 in interest-bearing debt on which it pays 8.2 percent interest. a. Assuming the firm's earnings are taxed...
Calculate the gross profit rate and the profit margin.(Round answers to 1 decimal place, s. 15.2%)...
Calculate the gross profit rate and the profit margin.(Round answers to 1 decimal place, s. 15.2%) Gross profit rate Profit margin Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions Salaries and wages expenses $460 Research and development expense 114 Depreciation expense 90 Income tax expense 498 Sales revenue 46 6,230 Loss on disposal of plant assets 161 Cost of goods sold Interest expense 3,000 Advertising...
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and...
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and Terms are: Sales Sales Discounts (5 %) $16,000 S $105,000 560 $418,000 Net sales Cost of goods sold Gross profit from sales 4,00 31,00 -320.00 215,00 -8.000-64.000 Gross profit margin ratio Gross profit/ Sales) x 100 Operating expenses ?9.000 . 31.000 -22.00? -261,000 106.000 rofit (loss) Quick Study 5-2
QUESTION 9 1. What does the operating expense percentage measure? a. The amount of profit left in a business after deducting cost of goods sold from b. The relative amount of operating expenses (excluding financing costs) incurred comparte goods sold. c. The percentage of sales incurred for operating expenses and income taxes d. The percentage of sales absorbed by operating expenses, excluding interest
Saved points QUESTION 2 Which of the following defines gross profit? a. The amount remaining from the sales value after deducting interest expense. b. The amount remaining from the sales value after deducting overhead costs c. The amount remaining from the sales value after deducting the cost of goods sold. d. The amount remaining from the sales value after deducting depreciation and Amortization
Exercise 11-15 Using contribution margin format income statement to measure the magnitude of operating leverage LO 11-3, 11-4 The following income statement was drawn from the records of Munoz Company, a merchandising firm: MUNOZ COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (6,500 units x $167) Cost of goods sold (6,500 units X $85) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units X $4)...
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...
(Profitability and capital structure analysis) In the year just ended, Callaway Lighting had sales of $5,210,000 and incurred cost of goods sold equal to $4,540,000. The firm's operating expenses were $134,000 and its increase in retained earnings was $44,000 for the year. There are currently 95,000 common stock shares outstanding and the firm pays a $2.542 dividend per share. The firm has $1,180,000 in interest-bearing debt on which it pays 8.2 percent interest. a. Assuming the firm's earnings are taxed...
(Profitability and capital structure analysis) In the year just ended, Callaway Lighting had sales of $5,210,000 and incurred cost of goods sold equal to $4,540,000. The firm's operating expenses were $134,000 and its increase in retained earnings was $44,000 for the year. There are currently 95,000 common stock shares outstanding and the firm pays a $2.542 dividend per share. The firm has $1,180,000 in interest-bearing debt on which it pays 8.2 percent interest. a. Assuming the firm's earnings are taxed...
Calculate the gross profit rate and the profit margin.(Round answers to 1 decimal place, s. 15.2%) Gross profit rate Profit margin Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions Salaries and wages expenses $460 Research and development expense 114 Depreciation expense 90 Income tax expense 498 Sales revenue 46 6,230 Loss on disposal of plant assets 161 Cost of goods sold Interest expense 3,000 Advertising...
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and Terms are: Sales Sales Discounts (5 %) $16,000 S $105,000 560 $418,000 Net sales Cost of goods sold Gross profit from sales 4,00 31,00 -320.00 215,00 -8.000-64.000 Gross profit margin ratio Gross profit/ Sales) x 100 Operating expenses ?9.000 . 31.000 -22.00? -261,000 106.000 rofit (loss) Quick Study 5-2
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