Refer to the following mentioned data. Calculate the gross profit ratio for each

Question

Refer to the following mentioned data. Calculate the gross profit ratio for each of the past three years. (Round your answers to 2 decimal places.) Assume that Campbell's net sales for the first four months of 2012 totaled $12.69 billion. Calculate an estimated cost of goods sold and gross profit for the four months, using the gross profit ratio for 2011. (Enter your answer in millions (i.e., 5,000,000 should be entered as 5). Round your intermediate calculations to two decimal places and your final answers to the nearest dollar amount.)

Explanation / Answer

Ans:

= Gross profit / Net sales

2011 = $20,012 / $34,512

          = 57.98% or 0.5798%

2010 = $13,979 / $30,458

         = 54.10% or 0.5410%

2009 = $13,034 / $26,403

         = 49.37% or 0.4937%

Total sales = $12.69 billion

Calculation of cost of goods sold:

Total sale value = $12.69 billion for 100%

Cost of goods sold = 42%

Gross profit = 58%

Cost of goods sold = $5.3298 billion

Gross profit = $7.3602 billion

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