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Requirement 1e. Compute the gross profit percentage for 2016 and 2015 . Begin by

ID: 2565554 • Letter: R

Question

Requirement 1e. Compute the gross profit percentage for

2016

and

2015.

Begin by selecting the formula to compute the gross profit percentage.

Gross profit percentage

=

Gross profit / Net sales revenue

Now,

compute

the gross profit percentage for

2016

and

52015.

(Round your answers to one tenth of a percent, X.X%.)

2016:

g%

2015:

Comparative Income Statement

Years Ended December 31, 2016 and 2015

2016

2015

Net Sales

$468,000

$423,000

Cost of Goods Sold

238,000

212,000

Gross Profit

230,000

211,000

Operating Expenses

136,000

134,000

Income From Operations

94,000

77,000

Interest Expense

11,000

14,000

Income Before Income Tax

83,000

63,000

Income Tax Expense

18,000

22,000

Net Income

$65,000

$41,000

Gross profit percentage

=

Gross profit / Net sales revenue

Explanation / Answer

Calculate gross profit percentage :

2015 2016 Gross profit percentage formula Gross profit/Net sales revenue gross profit/net sales revenue 211000*100/423000 230000*100/468000 Gross profit percentage 49.88% 49.15%
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