Question

RT ayout Chapter 15 Sample Questions (1) - PowerPoint DESIGN TRANSITIONS ANIMATIONS SLIDE SHOW REVIEW VIEW ADD-INS HAAA .EE, IN- BIUS al NV . A . A . SEE Shapes Arrange Quick Styles Font Paragraph Drawing leset ection Click to add title Percent of Total 100.0 2016 $4,920 2200 2,720 470 55.3 Bateman, Inc Comparative Income Statement Years Ended December 31, 2017 and 2016 Percent of In millions) 2017 Total Net Sales 56,355 100.0% Cost of Goods Sold 3.370 530 Gross Profit 2,985 Operating Expenses. Selling Expenses 675 Administrative expenses 410 Total Operating Expenses 1,085 17.1 Operating Income 1.900 Other Revenues and Expenses): Interest Revenue Ol a Interest Expense (400) (6.3) Total Revenues and Expenses) 400 1 63 Income Before Income Taxes 1.500 23.6 Income Tax Expense Net Income $1.270 20.0 580 425 1,005 1.715 29.3 (695) (695 1.020 210 5810 The figure 47.0% shown for gross profit in 2017 signifies that the gross profit is NOTES COMMENTS B E B

Answer 1

Gross profit is the difference between net sales and cost of goods sale. The value of gross profit can be seen on the income statement after deducting operating expense we get the value of income statement.

Gross Profit = Net Revenue - Cost of Goods sold

Gross profit is 47% for the year 2017. It means gross Profit is = Net Sales * 47%.

Verification: Net Sales for year 2017 * 47% = Gross Profit

= $6,355 * 47% = $2,985

So the figure 47.0% shown for gross profit in 2017 signifies that gross profit is 47.0% of net sales revenue.