Question

Refer to the following mentioned data.

	(In millions)
	2017			2016			2015
Net sales	$	34,092		$	30,418		$	26,944
Cost of products sold		14,318			13,517			13,549
Gross margin	$	19,774		$	16,901		$	13,395

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 $12.95 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).)

Answer 1

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Thank you.