Question

# 1- Financial information is presented below: Operating expenses \$ 50000 Sales returns and allowances 6000 Sales...

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

 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