tions displayed below) Shown below are selected data from the financial statemen

Question

tions displayed below) Shown below are selected data from the financial statements of Supreme Co. Dollar amounts a the per share data). Income statement data: Net sales Cost of goods sold Operating expenses Net income $1,110 $490 5 410 s 330 Balance sheet data: Average total equity Average total assets $1,800 $3,400 Supreme reported earnings per share for the year of $5 and paid cash dividends of $2 per share Street Journal listed Supreme's capital stock as trading at $82 per share. Supreme's gross profit rate was:

Explanation / Answer

Solution:

Gross profit rate = (Net sales - cogs) / net sales * 100

= (1,110 - 490) / 1,110 * 100

= 55.86%

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