Question

Arlington Merchants reported the following on its income statement for the fiscal years ended December 31,...

Arlington Merchants reported the following on its income statement for the fiscal years ended December 31, 2020 and 2019.

2020 2019
Sales $4,853,000 $4,753,000
Cost of goods sold 3,266,069 3,203,522
Gross profit 1,586,931 1,549,478
Operating expenses 878,393 893,564
Profit $708,538 $655,914

Calculate the gross profit margin for Arlington for 2019 and 2020. (Round answers to 1 decimal place, e.g. 52.7%.)

Gross profit margin
2020 %
2019 %

eTextbook and Media

  

  

Calculate the profit margin for Arlington for 2019 and 2020. (Round answers to 1 decimal place, e.g. 52.7%.)

Profit margin
2020 %
2019 %

eTextbook and Media

  

  

For each ratio calculated in (a) and (b) above, comment if the ratio has improved or deteriorated from 2019 to 2020.

The gross profit margin has                                                                       improveddeteriorated from 2019 to 2020.
The profit margin has                                                                       improveddeteriorated from 2019 to 2020.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
2020 2019
Sales $4,853,000 $4,753,000
Cost of goods sold $3,266,069 $3,203,522
Gross profit $1,586,931 $1,549,478
Operating expenses $878,393 $893,564
Profit $708,538 $655,914
Gross profit margin= Gross profit / Sales
Gross profit margin= 32.7% 32.6%
(1,586,931/4,853,000) (1,549,478/4,753,000)
Profit margin = Net profit / Sales
14.6% 13.8%
(708,538/4,853,000) (655,914/4,753,000)
The gross profit margin has improved from 2019
The Profit margin has improved from 2019 to 2020

*Please give ratings to my answer.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Splish Brothers Merchants reported the following on its income statement for the fiscal year ended December...
Splish Brothers Merchants reported the following on its income statement for the fiscal year ended December 31, 2021 and 2020. 2021 2020 Sales $496,060 $475,390 Cost of goods sold     Beginning inventory 146,480 154,124     Net purchases 345,990 322,960     Ending inventory (138,774) (146,480) Cost of goods sold 353,696 330,604 Gross profit 142,364 144,786 Operating expenses 87,568 89,168 Profit $54,796 $55,618 Calculate the inventory turnover ratio for Splish Brothers for 2021 and 2020. (Round answers to 2 decimal places, e.g. 52.75.) 2021 2020...
Metlock Inc., a fertilizer company based in Alberta, had the following information on its financial statements...
Metlock Inc., a fertilizer company based in Alberta, had the following information on its financial statements for the fiscal years ended December 31. All figures are in millions of dollars. 2022 2021 2020 2019 Net sales $16,210 $15,759 $16,882 $15,380 Profit 715 1,303 1,498 1,335 Total assets 17,252 15,955 14,378 13,280 a) Calculate Metlock's (1) asset turnover ratio, and (2) return on assets ratio for 2020 through 2022. (Round answers to 2 decimal places, e.g. 52.75.) 2022 2021 2020 Asset...
The following information is available for Tamarisk, Inc. for three recent fiscal years. 2022 2021 2020...
The following information is available for Tamarisk, Inc. for three recent fiscal years. 2022 2021 2020 Inventory $568,000 $578,000 $345,000 Net sales 1,910,000 1,775,000 1,370,000 Cost of goods sold 1,661,700 1,384,500 954,000 (a) Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.) 2022 2021 Inventory Turnover...
The following information is available for Splish Brothers Inc. for three recent fiscal years. 2022 2021...
The following information is available for Splish Brothers Inc. for three recent fiscal years. 2022 2021 2020 Inventory $580,000 $590,000 $320,000 Net sales 1,950,000 1,750,000 1,350,000 Cost of goods sold 1,462,500 1,228,500 938,000 (a) Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.) 2022 2021 Inventory...
Diamond Company Statement of Comprehensive Income for the year ended December 31, 2019 Sales revenue Cost...
Diamond Company Statement of Comprehensive Income for the year ended December 31, 2019 Sales revenue Cost of goods sold Gross profit $1,294,000 737,000 $557,000 Operating Expenses Advertising expense $ 7,900 Depreciation expense Salaries expense 64,000 169,000 240,900 Profit $316,100 Diamond Company Statement of Financial Position December 31, 2019 Assets Current Assets Cash $ 37,000 Accounts receivable Inventory Total current assets 115,000 106,500 $258,500 Non-current Assets Property, Plant, & Equipment $565,000 Less: Accumulated depreciation 115,000 450,000 Total Assets $708,500 Liabilities Current...
Here is the income statement for Myers, Inc. Myers, Inc. Income Statement For the Year Ended...
Here is the income statement for Myers, Inc. Myers, Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue $434,000 Cost of goods sold 222,000 Gross profit 212,000 Expenses (including $10,000 interest and $20,500 income taxes) 82,000 Net income $ 130,000 Additional information: 1. Common stock outstanding January 1, 2020, was 16,000 shares, and 24,000 shares were outstanding at December 31, 2020. 2. The market price of Myers stock was $13.75 in 2020. 3. Cash dividends of $27,300...
Here is the income statement for Myers, Inc. Myers, Inc. Income Statement For the Year Ended...
Here is the income statement for Myers, Inc. Myers, Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue $420,000 Cost of goods sold 224,000 Gross profit 196,000 Expenses (including $10,000 interest and $21,500 income taxes) 106,000 Net income $ 90,000 Additional information: 1. Common stock outstanding January 1, 2020, was 16,000 shares, and 24,000 shares were outstanding at December 31, 2020. 2. The market price of Myers stock was $18.26 in 2020. 3. Cash dividends of $21,600...
Thrifty Co. reported net income of $767,000 for its fiscal year ended January 31, 2020. At...
Thrifty Co. reported net income of $767,000 for its fiscal year ended January 31, 2020. At the beginning of that fiscal year, 173,000 shares of common stock were outstanding. On October 31, 2019, an additional 49,000 shares were issued. No other changes in common shares outstanding occurred during the year. Also during the year, the company paid the annual dividend on the 28,000 shares of 6%, $55 par value preferred stock that were outstanding the entire year. Required: a. Calculate...
In its income statement for the year ended December 31, 2017, Ivanhoe Company reported the following...
In its income statement for the year ended December 31, 2017, Ivanhoe Company reported the following condensed data. Salaries and wages expenses $813,750 Loss on disposal of plant assets $ 146,125 Cost of goods sold 1,727,250 Sales revenue 3,867,500 Interest expense 124,250 Income tax expense 43,750 Interest revenue 113,750 Sales discounts 280,000 Depreciation expense 542,500 Utilities expense 192,500 Prepare a multiple-step income statement. (List other revenues before other expenses.) IVANHOE COMPANY Income Statement For the Month Ended December 31, 2017For...
Financial information for two companies are presented below. Fill in the missing amounts. Oriole Company Ivanhoe...
Financial information for two companies are presented below. Fill in the missing amounts. Oriole Company Ivanhoe Company Sales revenue $ 97,200 $ Sales returns and allowances $  4,000 Net sales 83,000 106,000 Cost of goods sold 54,800 Gross profit $ 44,000 Operating expenses 14,700 Net income $ 15,600 eTextbook and Media List of Accounts Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 15.5%.) Oriole Company Ivanhoe Company Profit margin %...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT