Anthony Thomas Candies (ATC) reported the following financial data for 2016 and

Question

Anthony Thomas Candies (ATC) reported the following financial data for 2016 and 2015: 2016 2015 Sales $305,000 $298,000 Sales returns and allowances 9,000 5,000 Net sales $296,000 $293,000 Cost of goods sold: Inventory, January 1 55,000 35,000 Net purchases 134,000 139,000 Goods available for sale 189,000 174,000 Inventory, December 31 57,000 55,000 Cost of goods sold 132,000 119,000 Gross profit $164,000 $174,000 ATC's gross profit ratio in 2016 is (Round your answer to one decimal place e.g., .123 as 12.3%): 55.4%. 57.4%. 56.1%. None of these is correct. I come up with 574%

Explanation / Answer

Gross profit (%) in 2016= Gross profit(2016)/Net sales (2016)

=164,000/296,000=55.41%

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.