Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows:$ 2,390,0001,400,000SalesCost of goods soldGross profitSelling and administrative expenseOperating profitInterest expenseIncome before taxes.Taxes (30%)Income after taxesa. Compute the profit margin for 20X1.Note: Input the profit margin as a percent rounded to 2 decimal places.Profit margin$ 990,000352,000$ 638,00052,700$585,300175,590$ 409,710b. Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep allother expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit marginfor 20X2?Note: Input the profit margin as a percent rounded to 2 decimal places.Income after taxesProfit margin20X2

Ratio analysis is an analytical way of acquiring knowledge about the liquidity of a firm, its…

Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: $ 2,390,000 1,400,000 $ 990,000 352,000 Sales Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Income before taxes Taxes (30%) Income after taxes Profit margin a. Compute the profit margin for 20X1. Note: Input the profit margin as a percent rounded to 2 decimal places. $ 638,000 52,700 Income after taxes Profit margin $ 585,300 175,590 $ 409,710 b. Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2? Note: Input the profit margin as a percent rounded to 2 decimal places. 20x2

Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: $ 2,390,000 1,400,000 $ 990,000 352,000 Sales Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Income before taxes Taxes (30%) Income after taxes Profit margin a. Compute the profit margin for 20X1. Note: Input the profit margin as a percent rounded to 2 decimal places. $ 638,000 52,700 Income after taxes Profit margin $ 585,300 175,590 $ 409,710 b. Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2? Note: Input the profit margin as a percent rounded to 2 decimal places. 20x2

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

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The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
Please answer very fast then i ll upvote Calculate EBIT. Revenue 1,061,751.0 Cost of sales 690,135.0 Selling, general and administration 53,087.0 Other income 11,796.0 Operating income 330,325.0 Interest expense 19,874.0 Profit before tax 310,451.0 Tax expense 46,500.0 Net income 263,951.0 The footnotes mention the following: Cost of sales includes inventory write off costs 39,677.0 Cost of sales includes distribution costs 120,458.0 SG&A includes corporate restructuring expenses 15,570.0 Responses 385,572.0 275,078.0 330,325.0 506,030.0
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