Question

1- Financial information is presented below: Operating expenses $ 50000 Sales returns and allowances 6000 Sales discounts 7000 Sales revenue 158000 Cost of goods sold 90000 The gross profit rate would be

A )0.38.

B) 0.35.

C) 0.43.

D) 0.62.

2- Financial information is presented below:

Operating expenses	$ 44000
Sales returns and allowances	14000
Sales discounts	5000
Sales revenue	180000
Cost of goods sold	109000

The profit margin would be

A ) 0.32.

B) 0.02.

C) 0.17.

D) 0.05.

Hi can you help on this questions asap

thanks

Answer 1

Net sales = sales - sakes return- sales discount
=$158000-6000-7000
=$145000
Gross profit rate = (net sales - cost ofgoods sold )/ sales
=($145000-90000)/145000
=$55000/145000
=0.38
Net sales = sales - sakes return- sales discount
=$180000-4000-5000
=165500
NetIncome = net sales - cost of goods sold - operating expenses
= $161000-109000-44000
=$8000
Profit Margin = Net Income / Sales
= $8000+/161000
=0.05