QUESTION 3 Incorrect Mark 0.00 out of 5.00P Flag question Profitability Analysis

Question

QUESTION 3 Incorrect Mark 0.00 out of 5.00P Flag question Profitability Analysis Shannon Enterprises reports the following information on its year-end income statement: Net Sales 180,000 Operating Expenses $40,000 Cost of Goods Sold 110,000 Other Income 25,000 Required Calculate Shannon's gross profit percentage and return on sales ratio. (Round answer to one decimal place.) Gross profit percentage- Return on sales ratio- Check You have correctly selected O Macks for this submission:0.00/5.00 Previous oage

Explanation / Answer

Gross Profit = Net Sales - Cost of Goods Sold

= $180000 - $110000

= $70000

Gross Profit in % = Gross Profit / Net Sales

= $70000 / $180000

= 0.3889 or 38.89%

Operating Profit = Gross Profit + Other Income - Operating Expenses

= $70000 + $25000 - $40000

= $55000

Return on Sales = Operating Profit / Net Sales

= $55000 / $180000

= 0.3056 or 30.56%

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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