Question

Refer to the following mentioned data. (In millions) Net sales 2017: \$ 34,412 2016: \$ 30,135...

Refer to the following mentioned data. (In millions)

Net sales 2017: \$ 34,412 2016: \$ 30,135 2015: \$ 26,795

Cost of products sold 2017: 14,613 2016: 13,145 2015: 13,236

Gross margin 2017: \$ 19,799 2016: \$ 16,990 2015: \$ 13,559

Required: a. Calculate the gross profit ratio for each of the past three years. (Round your answers to 2 decimal places.)

b. Assume that Campbell’s net sales for the first four months of 2018 totaled \$12.19 billion. Calculate an estimated cost of goods sold and gross profit for the four months, using the gross profit ratio for 2017. (Round intermediate calculations to 2 decimal places. Enter your answers in millions rounded to nearest whole number (i.e., 5,000,000 should be entered as 5).)

a.

 2017 2016 2015 Net Sales 34,412 30,135 26,795 Cost of products sold 14,613 13,145 13,236 Gross margin 19,799 16,990 13,559 Gross profit ratio (Gross Margin/Net sales) 57.54% 56.38% 50.60%

b.

Net sales = \$12.19 billion

= 12.19 x 1,000

= \$12,190 million

Gross profit ratio = 57.54%

Gross profit = Net sales x Gross profit ratio

= 12,190 x 57.54%

= 7,014 million

Cost of goods sold = Net sales - Gross profit

= 12,190-7,014

= \$5,176 million

Kindly comment if you need further assistance.

Thanks‼!

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