Compute gross margin percentage and net profit margin ratio

Assignment Help Accounting Basics
Reference no: EM132456577

Problem - The Alpha Company gathered the following condensed data for the year ended December 31, 2014:

Preferred stock dividends paid

$50,000

Net Sales

825,000

Interest revenue

10,000

Selling expenses

225,000

Administrative expenses

125,000

Cost of Goods Sold

400,000

Income tax percentage

30%

Required -

(1) Prepare a multiple-step income statement for the year ended December 31, 2014.

(2) Compute the gross margin percentage and net profit margin ratio. Alpha Company's assets at the beginning of the year were $1,500,000, and the assets were $1,400,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.

Reference no: EM132456577

Questions Cloud

Discuss the impact of hand tool design on injury : Discuss the impact of hand tool design on injury and musculoskeletal disorder risk for each of the ergonomic selection criteria for selecting hand tools
How you would present return on equity-earnings per share : Think about how you would present return on equity (ROE) and earnings per share (EPS) to a group of investors or senior management.
Discuss an access the niosh lifting equation : Discuss an access the Washington Industrial Safety and Health Act (WISHA) Lifting Equation. access the NIOSH Lifting Equation.
The equity section of the balance sheet : The equity section of the balance sheet can include many items such as preferred stock, common stock par value, additional paid-in capital,
Compute gross margin percentage and net profit margin ratio : Compute the gross margin percentage and net profit margin ratio. Alpha Company's assets at the beginning of the year were $1,500,000
Findings on ethical challenges faced by your organization : Propose your findings on the ethical challenges faced by your organization in recent history and the near future.
Discuss compatibility of participatory ergonomics program : Discuss the compatibility of participatory ergonomics programs and occupational safety and health management systems.
Describe the purpose of the statement of cash flows : Describe the purpose of the Statement of Cash Flows and the interrelationship between the statement of cash flows and the other major financial statements
Develop and implement a system of internal controls : Your friend, Lisa, plans to open a nail salon. Lisa states that she does not have time to develop and implement a system of internal controls

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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