questions 27-34 Thank you Page Use the following to answer questions 27-34 Victo
ID: 2531380 • Letter: Q
Question
questions 27-34
Thank you
Page Use the following to answer questions 27-34 Victory Corporation reports the following amounts in its December 31, 20XF income statement: Sales Net sales income tax expense Sales returns Interest expense 1,140,600 Advertising expense 1,126,400 Salaries expense 6,630 14,200 12,400 Cost of goods sold Utilities expense Average shares outstanding $289,300 201,500 580,100 21,000 100,000 27. SDetermine gross profit: 28. S 29. $ 30. $ 31. 32, %, calculate the profit margin (rounded to one decimal place) 33. Calculate Earnings per Share (two decimal places) 34. $ Determine operating expenses Determine Income before income taxes (IBT): termine net income %, calculate gross profit ratio (rounded to one decimal place) If ending inventory consisted of $45,200 and beginning inventory was $36,900 how much purchased during the year? inventory wasExplanation / Answer
27.Gross Profit
Gross Profit = Net Sales – Cost of goods sold
= ($11,40,600 - $14200) - $5,80,100
= $5,46,300
28.Operating Expenses
= Advertising Expenses + Salaries + Utilities
= $289300 + $201500 + $21000
= $5,11,800
29.Income before income tax (IBT)
= Gross Profit – Operating Expenses – Interest Expenses
= $546300 - $511800 - $12400
= $22,100
30.Net Income
= Income before income tax (IBT) – Income Tax
= $22,100 - $6630
= $15,470
31.Gross Profit Ratio
= (Gross Profit / Net Sales) x 100
= ($546300 / $1126400)x100
= 48.50%
32.Profit Margin
=(Net Income / Net Sales) x 100
= ($15470 / $1126400) x 100
= 1.4%
33.Earnings Per Share
= Net Income / Average shares outstanding
= $15470 / 100000 Shares
= $0.15 per share
34.Inventory Purchased During the year
Cost of goods sold = Opening inventory + Inventory Purchased – Closing Inventory
$580100 = $36900 + Purchases - $45200
Purchases = $580100 - $36900 + $45200
Inventory Purchased During the year = $ 588400
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