The following selected data was retrieved from the Wal-Mart, Inc. financial stat
ID: 2502878 • Letter: T
Question
The following selected data was retrieved from the Wal-Mart, Inc. financial statements for the year ending January 31, 2013:
Accounts Payable
$38,080
Accounts Receivable
6,768
Cash
7,781
Common Stock
3,952
Cost of Goods Sold
352,488
Income Tax Expense
7,981
Interest Expenses
2,064
Membership Revenues
3,048
Net Sales
466,114
Operating, Selling and Administrative Expenses
88,873
Retained Earnings
72,978
Required:
Using the information provided above:
1. Prepare a multiple-step income statement
2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.
Accounts Payable
$38,080
Accounts Receivable
6,768
Cash
7,781
Common Stock
3,952
Cost of Goods Sold
352,488
Income Tax Expense
7,981
Interest Expenses
2,064
Membership Revenues
3,048
Net Sales
466,114
Operating, Selling and Administrative Expenses
88,873
Retained Earnings
72,978
Explanation / Answer
NET SALE S= 466114
LESS:- COST OF GOODS SOLD = (352488)
GROSS PROFIT = 113626
ADD:-MEMBERSHIP REVENUES = 3048
LESS:- Operating, Selling and Administrative Expenses = (88873)
LESS:- Interest Expenses = 2064
LESS:- Income Tax Expense = (7981)
NET PROFIT = 17756
PROFIT MARGIN = NET PROFIT/ NET SALES * 100
= 17756/466114 * 100
=3.81%
GROSS PROFIT MARGIN = GROSS PROFIT/NET SALES * 100
= 113626/466114 * 100
= 24.38%
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