i Secure https://edugen. wileyplus.com/edugen/lti/main.uni LUS OURCES Exercise 5
ID: 2395084 • Letter: I
Question
i Secure https://edugen. wileyplus.com/edugen/lti/main.uni LUS OURCES Exercise 5-7 Ex Financial information for two companies are presented below Fill in the missing amounts. by Study Sunland Sales revenue Sales returns and allowances Net sales Cost of goods sold Gross profit 97.000 s 3,000 101,000 81,000 55.000 47,000 14,560 Net income 18,200 Calculate the profit margin and the gross profit rate for each company, (Round ansivers to I decimal place, e.g. 15.59.) Sunland Company Blossom Company Profit margin Gross profit rate Click if you would like to Show Work for this questioni oan Shon Wrs O Type here to search upExplanation / Answer
Sunland Company:
Net Sales = Sales Revenue - Sales Returns and Allowances
$81,000 = $97,000 - Sales Returns and Allowances
Sales Returns and Allowances = $16,000
Gross Profit = Net Sales - Cost of Goods Sold
Gross Profit = $81,000 - $55,000
Gross Profit = $26,000
Net Income = Gross Profit - Operating Expenses
Net Income = $26,000 - $14,560
Net Income = $11,440
Profit Margin = Net Income / Net Sales
Profit Margin = $11,440 / $81,000
Profit Margin = 14.1%
Gross Profit Rate = Gross Profit / Net Sales
Gross Profit Rate = $26,000 / $81,000
Gross Profit Rate = 32.1%
Blossom Company:
Net Sales = Sales Revenue - Sales Returns and Allowances
$101,000 = Sales Revenue - $3,000
Sales Revenue = $104,000
Gross Profit = Net Sales - Cost of Goods Sold
$47,000 = $101,000 - Cost of Goods Sold
Cost of Goods Sold = $54,000
Net Income = Gross Profit - Operating Expenses
$18,200 = $47,000 - Operating Expenses
Operating Expenses = $28,800
Profit Margin = Net Income / Net Sales
Profit Margin = $18,200 / $101,000
Profit Margin = 18.0%
Gross Profit Rate = Gross Profit / Net Sales
Gross Profit Rate = $47,000 / $101,000
Gross Profit Rate = 46.5%
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