Question

In: Accounting

Given the following accounts: Wages Expenses 4,000 Receivables 2,662 Land 17,684 Automobiles 56,163 Rent 700 Commercial...

Given the following accounts:

Wages Expenses 4,000
Receivables 2,662
Land 17,684
Automobiles 56,163
Rent 700
Commercial Paper Payable (3 months) 3,754
Long Term Debt 24,754
Long Term Interest Payable 1,467
Capital 3,350
Accounts Payable (11 months) 23,698
Retained Earnings 46,381
Cash and Cash Equivalents 6,414
Sales 51,496
Other Income 250
Inventories 25,076
Other Expenses 500
Transportation Expense 165
Debts due within one year 4,595

Build the balance sheet and the income statement

What is the gross profit margin? (enter your answer rounded to two decimals)

Gross profit margin = net income / sales

Solutions

Expert Solution

Income Statement Amt
Sales $               51,496
Wages $                 4,000
Gross Magin $               47,496
Rent $                     700
transportation Expnses $                     165
Operating Income $               46,631
Other Income $                     250
Other Expenses $                     500
Net Profit $               46,381
Balance sheet Amt
Assets
Current Assets
Receivables $                 2,662
Cash and Cash Eq $                 6,414
Inventory $               25,076
Total Current Assets $               34,152
Non-current Assets
Land $               17,684
Automobiles $               56,163
Total Non-current assets $               73,847
Total Assets $             107,999
Liabilities
Current Liabilities
Commercial Paper(payable 3 months) $                 3,754
Debts due within 1 year $                 4,595
Account Payable $               23,698
Total Current Liabilites $               32,047
Long Term Liabilites
Long term debt $               24,754
Long Term Interest payable $                 1,467
Total Long term liabilities $               26,221
Capital & Retained earnings
Capital $                 3,350
Retained Earnings $               46,381
Total Capital and retained earnings $               49,731
Total Liabilities $             107,999

Gross profit margin=Gross profit/Net Sales * 100 = 47497/51496*100=92.23%

Assuming that rent and transportation charges are indirect expenses since nothing is mentioned in the question.

Futher, As stated in the question "Gross profit margin = net income / sales"

Answer will be =46381/51496*100=90.07%

(All calculations given in income statement as above)

If helpful, Thumbs UP Please!!!

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Given the following accounts: Wages Expenses 4,000 Receivables 2,662 Land 17,684 Automobiles 56,163 Rent 700 Commercial...
Given the following accounts: Wages Expenses 4,000 Receivables 2,662 Land 17,684 Automobiles 56,163 Rent 700 Commercial Paper Payable (3 months) 3,754 Long Term Debt 24,754 Long Term Interest Payable 1,467 Capital 3,350 Accounts Payable (11 months) 23,698 Retained Earnings 46,381 Cash and Cash Equivalents 6,414 Sales 51,496 Other Income 250 Inventories 25,076 Other Expenses 500 Transportation Expense 165 Debts due within one year 4,595 Build the balance sheet and the income statement What is the current ratio?
How does uncollectible accounts expenses impact what is reported toward net accounts receivables?
How does uncollectible accounts expenses impact what is reported toward net accounts receivables?
Required: 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent...
Required: 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles. 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current...
1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue,...
1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation Expense—Building, Depreciation Expense—Equipment and Supplies Expense. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTSEmerson CompanyGeneral Ledger...
  Cash $ 80 Accounts Payable $ 26   Accounts Receivable 12 Wages and Other Expenses Payable 111...
  Cash $ 80 Accounts Payable $ 26   Accounts Receivable 12 Wages and Other Expenses Payable 111   Inventories 188 Long-Term Debt 203   Other Current Assets 26 Other Long-Term Liabilities 44   Property, Plant, and Equipment 355 Contributed Capital 356   Other Assets 99 Retained Earnings 20 Assume that the following events occurred in the quarter ended December 31 (amounts provided are in whole dollars): Paid $2,000,000 cash for an additional “other asset”. Issued additional shares for $2,000,000 in cash. Purchased property, plant, and...
McClane, Inc. provided the following aging of its receivables at December 31. Age of Accounts Receivables...
McClane, Inc. provided the following aging of its receivables at December 31. Age of Accounts Receivables Balance Estimated % Uncollectible 0-30 days $420,000 0.5% 31 to 60 days 200,000 5.2% 61 to 90 days 75,000 10.3% 91 to 120 days 35,000 21.5% Over 121 days    15,000 75.2% Total $745,000 During the year, $22,500 of receivables were written off. The balance at the beginning of the year in the allowance account was a credit of $25,000. How much will McClane...
please create a general journal for the following transactions Please use the following accounts: Accounts Receivables,...
please create a general journal for the following transactions Please use the following accounts: Accounts Receivables, Raw materials, Work in process, Finished goods, Accumulated depreciation, Accounts payable, Salaries and wages payable, Sales revenue, Manufacturing overhead, Cost of goods sold, Salaries and wages expense, Advertising expenses, and Depreciation expense. The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis.   Table Top $1,000.00    Table Leg  $ 150.00    Drawer   $ 300.00  ...
Accounts Payable Accounts Receivable Building Cash Equipment Fees Earned Land Owner—Drawing Owner—Equity Rent Revenue Supplies Utilities...
Accounts Payable Accounts Receivable Building Cash Equipment Fees Earned Land Owner—Drawing Owner—Equity Rent Revenue Supplies Utilities Expense Wages Expense If the total of each ACCOUNT is $5,000 what will be the NET INCOME ?
Shannon Company allocates in indirect costs on the following bases: 1. Janitors wages and rent of...
Shannon Company allocates in indirect costs on the following bases: 1. Janitors wages and rent of building on the basis of floor space 2. Electricity, gas, water, and miscellaneous factory costs on the basis of percentages given 3. Maintenance department costs on the basis of chargeable maintenance hours 4. Storeroom department costs on the basis of proportion of number of requisitions Management has hired you as a consultant to prepare a schedule of allocated costs. Use the step-method to allocate...
Assume a primary care clinic has the following in costs: Wages and benefits = $280,000 Rent...
Assume a primary care clinic has the following in costs: Wages and benefits = $280,000 Rent = $10,000 annually Depreciation = $24,000 Utilities = $3,000 Medical supplies = $50,000 Administrative supplies = $8,000 Visits = 15,000 Assume all costs are fixed except medical supplies. What is the clinic’s underlying cost structure? ______________ What are the clinic’s total expected costs? _______________ What would the estimated costs be if visits were 5% over expected? ___________ What if they were 8% under expected?...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT