Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 6, Problem 19Q
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; Cost of Goods Sold: $120,470; Sales Discounts: $44,760.
Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors?
Round to the nearest percentage with one decimal place and include "%" (for example, 12.3%).
The following is select account information for August Sundries: Sales: $850,360; Sales Returns and Allowances: $148,550; Cost of Goods Sold: $300,840; Operating Expenses: $45,770; and Sales Discounts: $231,820.
PLEASE NOTE: All dollar amounts will have "$" and commas, where needed (i.e. $12,345).
If August Sundries uses a multi-step income statement format, what is their gross margin?
Rickey’s Retail has the following financial information for the most recent accounting period. Prepare an income statement.
Gross Sales= $864,740
Sales Returns & Allowances= $47,399
Cost of Goods Sold= $483,237
Rent Expense= $86,705
Interest Expense= $1,156
Income Tax Expense= $16,185
Depreciation Expense= $5,780
Salaries Expense= $98,266
Utility Expense= $28,902
Chapter 6 Solutions
Principles of Accounting Volume 1
Ch. 6 - Which of the following is an example of a contra...Ch. 6 - What accounts are used to recognize a retailers...Ch. 6 - Which of the following numbers represents the...Ch. 6 - If a customer purchases merchandise on credit and...Ch. 6 - Which of the following is a disadvantage of the...Ch. 6 - Which of the following is an advantage of the...Ch. 6 - Which of the following is not a reason for the...Ch. 6 - Which of the following is not included when...Ch. 6 - Which of the following accounts are used when...Ch. 6 - A retailer pays on credit for $650 worth of...
Ch. 6 - A retailer returns $400 worth of inventory to a...Ch. 6 - A retailer obtains a purchase allowance from the...Ch. 6 - Which of the following accounts are used when...Ch. 6 - A customer pays on credit for $1,250 worth of...Ch. 6 - A customer returns $870 worth of merchandise and...Ch. 6 - A customer obtains a purchase allowance from the...Ch. 6 - Which of the following is not a characteristic of...Ch. 6 - Which two accounts are used to recognize shipping...Ch. 6 - Which of the following is not a characteristic of...Ch. 6 - A multi-step income statement ________. A....Ch. 6 - Which of the following accounts would be reported...Ch. 6 - A simple income statement ________. A. combines...Ch. 6 - Which of the following accounts would not be...Ch. 6 - Which of the following accounts are used when...Ch. 6 - A retailer obtains a purchase allowance from the...Ch. 6 - A customer returns $690 worth of merchandise and...Ch. 6 - A customer obtains an allowance from the retailer...Ch. 6 - What are some benefits to a retailer for offering...Ch. 6 - What do credit terms of 4/10, n/30 mean in regard...Ch. 6 - What is the difference between a sales return and...Ch. 6 - If a retailer made a purchase in the amount of...Ch. 6 - What are two advantages and disadvantages of the...Ch. 6 - What are two advantages and disadvantages of the...Ch. 6 - Sunrise Flowers sells flowers to a customer on...Ch. 6 - Sunrise Flowers sells flowers to a customer on...Ch. 6 - Name two situations where cash would be remitted...Ch. 6 - If a retailer purchased inventory in the amount of...Ch. 6 - A retailer discovers that 50% of the total...Ch. 6 - Name two situations where cash would be remitted...Ch. 6 - If a customer purchased merchandise in the amount...Ch. 6 - A customer discovers 60% of the total merchandise...Ch. 6 - What are the main differences between FOB...Ch. 6 - A buyer purchases $250 worth of goods on credit...Ch. 6 - A seller sells $800 worth of goods on credit to a...Ch. 6 - Which statement and where on the statement is...Ch. 6 - The following is select account information for...Ch. 6 - What is the difference between a multi-step and...Ch. 6 - How can an investor or lender use the Gross Profit...Ch. 6 - The following is select account information for...Ch. 6 - If a retailer purchased inventory in the amount of...Ch. 6 - A customer discovers 50% of the total merchandise...Ch. 6 - What is the difference in reporting requirements...Ch. 6 - On March 1, Bates Board Shop sells 300 surfboards...Ch. 6 - Marx Corp. purchases 135 fax machines on credit...Ch. 6 - Match each of the following terms with the best...Ch. 6 - The following is selected information from Mars...Ch. 6 - On April 5, a customer returns 20 bicycles with a...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Record the journal entry for each of the following...Ch. 6 - Record journal entries for the following sales...Ch. 6 - Record the journal entries for the following sales...Ch. 6 - Record the journal entry or entries for each of...Ch. 6 - Review the following situations and record any...Ch. 6 - Review the following situations and record any...Ch. 6 - Review the following situations and record any...Ch. 6 - The following select account data is taken from...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Record the journal entries for the following sales...Ch. 6 - Record the journal entry or entries for each of...Ch. 6 - On June 1, Lupita Candy Supplies sells 1,250 candy...Ch. 6 - Ariel Enterprises purchases 32 cellular telephones...Ch. 6 - For each of the following statements, fill in the...Ch. 6 - The following is selected information from Orange...Ch. 6 - On April 20, Barrio Bikes purchased 30 bicycles at...Ch. 6 - Blue Barns purchased 888 gallons of paint at $19...Ch. 6 - Canary Lawnmowers purchased 300 lawnmower parts at...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Blue Barns sold 136 gallons of paint at $31 per...Ch. 6 - Canary Lawnmowers sold 70 lawnmower parts at $5.00...Ch. 6 - Record journal entries for the following sales...Ch. 6 - Review the following situations and record any...Ch. 6 - Review the following situations and record any...Ch. 6 - Review the following situations and record any...Ch. 6 - The following select account data is taken from...Ch. 6 - Canary Lawnmowers purchased 300 lawnmower parts at...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Canary Lawnmowers sold 75 lawnmower parts at $5.00...Ch. 6 - Record journal entries for the following sales...Ch. 6 - Record journal entries for the following...Ch. 6 - Record journal entries for the following...Ch. 6 - Costume Warehouse sells costumes and accessories....Ch. 6 - Pharmaceutical Supplies sells medical supplies to...Ch. 6 - Review the following transactions for Birdy...Ch. 6 - Review the following transactions for Dish Mart...Ch. 6 - Review the following sales transactions for Birdy...Ch. 6 - Review the following sales transactions for Dish...Ch. 6 - Record the following purchase transactions of...Ch. 6 - The following is the adjusted trial balance data...Ch. 6 - The following is the adjusted trial balance data...Ch. 6 - Review the following transactions for Birdy...Ch. 6 - Review the following sales transactions for Dish...Ch. 6 - Record journal entries for the following...Ch. 6 - Record journal entries for the following...Ch. 6 - Costume Warehouse sells costumes and accessories...Ch. 6 - Pharmaceutical Supplies sells medical supplies and...Ch. 6 - Review the following transactions for April...Ch. 6 - Review the following transactions for Dish Mart...Ch. 6 - Review the following sales transactions for April...Ch. 6 - Review the following sales transactions for Dish...Ch. 6 - Record the following purchase transactions of...Ch. 6 - Record the following sales transactions of Money...Ch. 6 - Record the following sales transactions of Custom...Ch. 6 - The following is the adjusted trial balance data...Ch. 6 - Following is the adjusted trial balance data for...Ch. 6 - Review the following transactions for April...Ch. 6 - Review the following sales transactions for Dish...Ch. 6 - Conduct research on a real-world retailers trade...Ch. 6 - You have decided to open up a small convenience...Ch. 6 - You own your own outdoor recreation supply store....Ch. 6 - You own a clothing store and use a periodic...
Additional Business Textbook Solutions
Find more solutions based on key concepts
What are the theories that can help managers understand diversity?
Principles of Management
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
Direct, indirect, fixed, and variable costs. California Tires manufactures two types of tires that it sells as ...
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Define costvolumeprofit analysis.
Cost Accounting (15th Edition)
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (4th Edition)
E5–26 Journalizing adjusting entries including estimate sales returns
Learning Objective 3, 4
Emerson St. Boo...
Horngren's Accounting (12th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?arrow_forwardThe following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000arrow_forwardSarasota Company has the following account balances: Sales Revenue $242,100, Sales Discounts $3,310, Cost of Goods Sold $117,100, and Inventory $42,900.arrow_forward
- 1. Given this information, what is the profit percent? Format your answer to two decimal places and add a %-sign (i.e. 4.52%) Net Sales $561,800 Cost of Goods Sold 275,280 Expenses 253,936 2. Given this information, what is the profit dollars? Round your answer to the dollar and add a dollar sign and comma separator (i.e. $15,467) Net Sales $561,800 Cost of Goods Sold 275,280 Expenses 253,936 3. Given the information below, what is the profit dollars? Round your answer to the dollar and add a dollar sign and comma separator (i.e. $15,467) Gross Sales $341,420 Customer Returns 29,870 Cost of Goods Sold 161,570 Expenses 138,140 4. Given the information below, what is the profit percent? Round your answer to two decimal places and add a percent sign (i.e. 15.37%) Gross Sales $341,420 Customer Returns 29,870 Cost of Goods Sold 161,570 Expenses 138,140 5. Given the information below, what are…arrow_forwardThe Happy Auto Shop has the following annual information: gross sales,$700,000; net sales, $696,000; and gross profit, $448,000. What are theshop’s returns and allowances and cost of goods sold?arrow_forwardFor the fiscal year, sales were $191,350,000 and the cost of merchandise sold was $114,800,000.a. What was the amount of gross profit?b. If total operating expenses were $18,250,000, could you determine net income?c. Is Customer Refunds Payable an asset, liability, or owner’s equity account, and what is its normal balance?d. Is Estimated Returns Inventory an asset, liability, or owner’s equity account, and what is its normal balance?arrow_forward
- The Lancaster Corporation's income statement is given below. Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes LANCASTER CORPORATION Interest Income before taxes Taxes (35%) Income after taxes a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 234,000 175,000 $ 59,000 33,000 $ 26,000 17,300 $ 8,700 3,045 $ 5,655arrow_forwardFrom the below ratios provide a brief explanation about the profitability of Snick’s board shop. 5.1 Profitability ratios: - Return on assets 0.10 cents - Return on equity 0.71 cents - Profit margin 0.21 cents - Gross margin 54.29 %arrow_forwardThe Lancaster Corporation's income statement is given below. Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes (35%) Income after taxes LANCASTER CORPORATION a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 223,000 155,000 $ 68,000 33,100 $ 34,900 13,400 $ 21,500 7,525 $ 13,975arrow_forward
- The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company. Atlanta* $ 32,400 (15,500) 16,900 Boston* $ 87,500 (64,030) 23,470 Net sales Cost of goods sold Gross margin Less: Operating expenses Selling and administrative expenses Net income *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. a-2. Ascertain which of the companies is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $17,800 and $20,200, respectively, which company is in the more profitable business? Complete this question by entering your answers in the tabs below. Req A1 Req A2 (12,740) (19,026) $ 4,160 $ 4,444 Req B Gross margin percentages Return-on-sales ratios Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) Atlanta % % Bostonarrow_forwardConsider the following income statement data from the Ross Company: Current Year Prior Year $962,500 $720,000 582,960 440,820 182,175 156,420 104,100 79,000 13,533 8,532 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. (Round percentages to one decimal.) Ross Company Comparative Income Statements Sales revenue Cost of goods sold Gross profit on sales Operating expenses Selling expenses Administrative expenses Total Income before income taxes Income tax expense Net income $ $ LA Current Year Prior Year (Decrease) $ $ Increase Percent Change $ LAarrow_forwardThe Happy Auto Shop has the following annual information: Gross Sales, $700,000; Net Sales, $696,000; Gross Profit, $448,000. What are the shop’s returns and allowances and cost of goods sold? Give an overall detailed response.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License