Gross margin percentage problem

Assignment Help Accounting Basics
Reference no: EM13147294

Litten Corporation's most recent income statement appears below:

Sales (all on account)..........................$791,000
Cost of goods sold...............................412,000
Gross margin.....................................379,000
Selling and administrative expense...............214,000
Net operating income.............................165,000
Interest expense..................................34,000
Net income before taxes..........................131,000
Income taxes......................................40,000
Net income........................................91,000

The gross margin percentage is closest to:

A) 92.0%

B) 416.5%

C) 24.0%

D) 47.9%

Reference no: EM13147294

Questions Cloud

Stimulate interest in the company : How their three different options will stimulate interest in the company. Please briefly explain how the following three options will affect the company. 1. a 20% stock dividend
Calculate the arc price elasticity of demand for wheat : Calculate the arc price elasticity of demand for wheat in the two situations below: Can you explain/account for the difference, if any, in the two elasticities?
What must be true about the price elasticity of demand : What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.
Explain molar solution of nacl in water : In a 0.1 molar solution of NaCl in water, which one of the following will be closest to 0.1?" A) the mole fraction of NaCl B) The mass fraction of NaCl
Gross margin percentage problem : Litten Corporation's most recent income statement appears below: gross margin percentage. The gross margin percentage is closest to:
Probability that the sample mean will exceed two hundred : A random sample of 100 items is selected from a population of size 350. What is the probability that the sample mean will exceed 200 if the population means is 195 and the population standard deviation equals 20?
Calculate the arc cross-price elasticity of demand for jjt : Calculate the arc cross-price elasticity of demand for JJT's deluxe garment bag. B. JJT's deluxe garment bag sales recovered from 4,800 units to 6,000 units following a price reduction to $130 per unit.
What single amount on jule is equivalent : Each cash flow is equal to $128,000. The nominal interest rate is 12% compounded semi-annually. What single amount on Jule 1, 2015 is equivalent to this cash flow system?
What is bioinformatics : What is bioinformatics, and why is this discipline essential for studying genomes? Provide two examples of bioinformatics applications.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Cost of the securities

Decker Corporation purchased 1,000 shares of Kent common stock at $75 per share plus $3,000 brokerage fees as a short-term investment. The shares were subsequently sold at $80 per share less $3,400 brokerage fees.

  Construct a bond amortization table

Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first five years. Make sure all columns and rows are properly labeled.

  External costs of driving cars and gasoline taxes

Who should pay the external costs of driving? Identify the strongest two arguments in favor of such a tax and the strongest two arguments against such a tax.

  Total amount related to loan

What is the total amount related to this loan that should be reported under current liabilities on the company's December 31, 2008, balance sheet?

  Problem regarding cost of goods sold

Cost of goods sold for 2010 was $3,600,000. If Butler Company had used FIFO during 2010, its cost of goods sold for 2010 would have been ??

  Describe the potential costs involved with the action

List and describe four actions a firm can take to accelerate the collection of cash from sales. For each action listed, describe the potential costs involved with the action.

  Applying course concepts and enterting

Discuss how the concepts of this course can be applied to your current or future work position. Discuss whether or not you feel adequately prepared to enter the accounting profession as a Certified Public Accountant.

  Stock holders equity section of the balance sheet

Moran corporation has these accounts at December 31:common stock,$12 par, 5150 shares issued,$61,800;paid in,capital in excess of par value $20,100, retained earning $42,360, and treasury stock-common, 510 share,$12,240. Prepare the stock holders ..

  Getting a sample mean problem

The average cost of a one bedroom apartment in a town is $550 per month. What is the probability of randomly selecting a sample of 50 one bedroom apartments in this town and getting a sample mean of less then $530 if the population standard deviat..

  Formula to reduce the tax liability

A non profit company sells a pair of shoe that has a cost of $2.00 for the price of $102.00. The gross profit is 100%. The tax libility is 37%. What is the formula to reduce the tax liability to 0%

  Components of postretirement benefit expense

The components of postretirement benefit expense are similar to the components of pension expense. How does the service cost component differ between the two expenses?

  Reduction in direct-material cost

Yale requires a modification of the design that will allow a $4 reduction in direct-material cost.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd