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The following information is taken from the financial statements of a company fo

ID: 2490286 • Letter: T

Question

The following information is taken from the financial statements of a company for the current year: Use the information above to answer the following question. On a common size income statement for the year, what is the percentage that would be shown next to the dollar amount of sales revenue? Cannot be determined 100% 60% 14% Use the information above to answer the following question. The gross profit percentage for the current year rounded to the nearest whole percent is closest to: 24% 31% 76% 60%.

Explanation / Answer

1)Sales revenue is the starting in the income statemtn of common size and it is shown 100%
option B

2)gross profit= (sales-cogs)
200,000=sales-650,000
sales=850,000
profit=gross profit/sales
=650,000/850,000
=76%