Based on the information in the table, calculate gross margin Round the answers

Question

Based on the information in the table, calculate gross margin Round the answers to two decimal places in percentage form. Write the percentage sign in the "uw the firm's profit Balance Sheet December 31, 2010 Cash and marketable$102,000 Accounts payable Notes payable Accrued expenses Total current liabilities Long-term debt $287,000 $61,200 $$1,900 $400,100 $415,000 securities Accounts receivable$299,000 5628,000 $10,300 Inventories Prepaid expenses Total current assets Gross fixed assets Less: accumulated $1,039,300 Par value and paid-in $376.000 $1,502,000 $312,000 $1,190,000 $2,229,300 capital Retained Earnings $1.038.200 Common Equity Total liabilities and owners sz,229,300 Net fixed assets 1,414200 Totol assets equity Income statement, Year of 2010 6,387,700.00 4.726,898.00 5345.000.00 5148,000.00 51.167.802.00 550,600.00 51,117.202.00 Net sales (all credit) Less: Cost of goods sold Selling and administrative expente Depreciation expense EBT interest expense Earningr befors taxes ncome taxes 670,321.20 at Incom9

Explanation / Answer

Gross profit margin = gross profit / net sales

gross profit = net sales - cost of goods sold

= 6387700 - 4726898

= $16,60,802

Gross profit margin = $16,60,802 / $63,87,700

= 26%

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