Apex, Inc., had Gross sales of $560,000, Sales returns and allowances of $20,000

Question

Apex, Inc., had Gross sales of $560,000, Sales returns and allowances of $20,000, and Sales discounts of $2,000 in 2016. Cost of goods sold was $199,060, and net income was $53,800 for the year. The average number of shares of common stock outstanding during the year was 10,000 shares Requirement 1. Compute Apex, Inc.'s earnings per share, gross profit percentage, and net income percentage for 2016. Compute Apex, Inc.'s earnings per share for 2016. Select the formula needed to determine this amount and then enter the amounts to calculate the ratio. (Round the eamings per share to the nearest cent, $X.XX.) Average number of shares outstanding Earnings per share Net income 53,800 10,000 5.38 Compute Apex's gross profit percentage for 2016. Select the formula needed to determine this amount and then enter the amounts to calculate the ratio. Gross profit Net sales revenue Gross profit percentage

Explanation / Answer

Gross Sales $560,000.00 Less: Sales Return & allowance -$20,000.00 Sales Discount -$2,000.00 Net Sales Revenue $538,000.00 Less: COGS $199,060.00 Gross Profit $338,940.00 EPS = NI/ Shares outstanding = 53800/10000 $5.38 Gross Profit Margin = $338,940/$538000 63.00% Net Income % = $53800/$538000 10.00%

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