Compute the gross margin considering the following information from Kelly’s Kandles.
| Sales | $133,200 |
| Selling Expenses | 13,500 |
| General and Administrative Expenses | 16,100 |
| Net income before tax | 49,700 |
| Net income | 40,100 |
The days’ sales uncollected ratio is calculated by dividing accounts receivable by net sales and then multiplying by 365.
a. True.
b. False.
Iron Company had a $28,000 beginning inventory and a $29,000 ending inventory. Net sales were $171,000; purchases were $90,000; purchase returns and allowances, were $2,000; and freight in was $9,000. The cost of goods sold for the period is $96,000.
What is Iron’s gross profit percentage?
A. 44%
B. 16%
C. 56%
D. 17%
During the current year, Carl Equipment Stores had net sales of $540 million, a cost of goods sold of $264 million, average accounts receivable of $64 million, and an average inventory of $44 million.
Assuming a 365-day year, the average number of days required for Carl Equipment to sell its inventory is:
a. 182.5 days.
b. 89 days.
c. 30.4 days.
d. 60.8 days.
Order an Essay Now & Get These Homework Help Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
