Which of the following statements is correct? Group of answer choices A)When cost of goods sold as a percentage of sales decreases, the gross profit percentage will decrease. B)It is possible that when cost of goods sold in dollars increases, cost of goods sold as a percentage of sales decreases. C)If gross profit percentage is the same for the current and past year, then sales and cost of goods sold in dollars did not change. d)If gross profit percentage increases from one year to the next, then the net income percentage will also increase from one year to the next. E)None of the above

Q: This year your company has purchased less expensivemerchandise inventory but has not changed its…

A: Gross Profit is a difference between Net sales and Cost of goods sold. The formula for calculating…

Q: Calculate the gross profit from the following? Sales of OMR 20000, Cost of goods sold OMR 8000 and…

A: Sales = OMR 20000 Cost of goods sold = OMR 8000 Return inwards = OMR 6000 Net sales = Sales-Return…

Q: Ratio analysis of a company’s performance as shown in its profit and loss account may show a decline…

A: The decrease in the gross profit ratio may be due to the following reasons: Decrease in the selling…

Q: Calculate the gross profit from the following? Sales OMR 10000, Cost of goods sold OMR 4000 and…

A: Net sales = Sales - Return inwards = 10000 - 4000 = 6000

Q: 0,000. The cost of the goods sold is $4,698,000. a.  What is the amount of the gross profit? $

A: a) Amount of gross profit= Sales - Cost of goods sold= $8,100,000 - $4,698,000= $3,402,000

Q: Compared to using the FIFO method to account for inventory, during periods of risingprices, a…

A: USING OF LIFO METHOD

Q: (a) provide the highest net income? (b) result in the most stable earnings over a number of years?…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: Which of the following is true of the income statement? O Net income equals the amount of cash…

A: Under the accrual concept of accounting, expenses and revenues are recognized to the period in which…

Q: Determine the Prior Year and Current Year common-size percents for cost of goods sold using net…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: If the dollar amount in ending accounts payable is greater than the dollar amount in beginning…

A: Solution- Accounts payable are amounts due to vendors or suppliers for goods or services received…

Q: Sales Returns Which of the following statements is true relating to the allowance for sales returns?…

A: Sales return & allownace :— It is the amount of goods returned by customer due to receive of…

Q: gross profit method assumes

A: The gross profit technique calculates the value of inventory by combining current period data on net…

Q: During the current year, merchandise is sold for $206,200 cash and $430,300 on account. The cost of…

A: The Gross Profit is figured by deducting the Cost of goods sold (COGS) from Total Sales. It is also…

Q: During the current year, merchandise is sold for $665,000. The cost of the merchandise sold is…

A: Gross Profit=Total Sales - Cost of Goods Sold Gross profit percentage=Gross profit / Sales

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A: Cost of goods sold / Net Sales ratio defines the expenses of cost of goods sold as compared to…

Q: Use the following selected Information from Letterman Corporation to determine the Year 1 and Year 2…

A: Common size percentage commonly known as vertical analysis is calculated by dividing the amount by…

Q: 1.Given a particular set of factsand assumptions, the following pairs of amounts were computed using…

A: LIFO = Last in, First out FIFO = First in, First out A) $20,650 =FIFO$19,400 = LIFO B) $10,650 =…

Q: The problem is stated in the picture. Here is the question: 1. Assume instead, the Company uses…

A: Periodic Inventory System In this method, Ending inventory only updates at the end of the period…

Q: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in…

A: Working:   Computation:

Q: Given this information, what is the profit percent?  Format your answer to two decimal places and…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Assume that a firm separately determined inventory under FIFO and LIFO and then compared the…

A: FIFO is a method of costing inventory in which the inventory purchased first is out first for…

Q: Assume the following cost of goods sold data for a company: 2023 $1295360 2022 1209000 2021…

A: Cost of goods sold is the total selling amount of the inventory which is sold by the firm.

Q: Gross Margin of a Merchandise Business will be calculated by using which of the following formula?…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Which of the following statements is correct?

A: Cost of Goods Sold: It refers to the cost of production of the goods sold by the company. Such…

Q: ior Year and Current Year commonsize percents for cost of goods sold using net sales as the base…

A:

Q: Which of the following formula is correct for Gross Margin of a Merchandise Business under…

A:

Q: Bulldogs Inc. has recently calculated the inventory turnover for the currently year to be 30. In…

A: Answer. The company took fewer days to sell its inventory in the current year than in prior years.…

Q: Question 1  Indicate which one of the following would not appear on both a single-step income…

A: Since question 1 and 2 are incomplete we will answer question 3. Thank you.

Q: When a company that sells its products with a positive gross profit increases its sales by15 percent…

A: Answer:   Option b.

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Q: The gross profit technique implies that A. The value of the inventory has not grown from prior…

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Q: Which of the following will increase the gross profit of the merchandising business? Increase in…

A: Gross profit = Sales - cost of goods sold where, Cost of goods sold = Purchase cost of goods used +…

Q: to P276,000, sales this year at last year's prices is P230,000, the cost of sales this year is…

A: Variance : When there is a difference in the budgeted amount and what actually produces or occur is…

Q: Which of the following is false? Select one: a. Days’ sales in inventory is equal to the average…

A: Option “B” is False.

Q: You are the manager of a successful retail operation.  Inflation has been running at 3% per year on…

A: In accounting there are different methods that we can use for accounting of inventory. The main…

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Q: Required Determine the following (show key computations): a. The present sales volume in dollars. b.…

A: Solution: Break even Point is the point where company is at zero profit i.e., No loss-No profit…

Q: Which of the following statements is false when a company sells inventory costing $700 for $1,200?…

A: a company sells inventory costing $700 for $1,200

Q: hat is the ratio that measures the number of days on average the company takes to turn its inventory…

A: Solution: Days inventory outstatnding represents the average number of days the inventory takes to…

Q: Assume that the ending inventory of a merchandising firm is overstated by $40,000. a. By how much…

A: The cost of goods sold formula is calculated by adding purchases for the period to the beginning…

Q: a period in which the cost of inventory is rising, which of the following statements is true? The…

A: Issue of Material and its valuation: When the material purchased then that material is stored at its…

Q: Cost of goods sold has increased

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A: Meaning and Component  of Selling and  Administrative Expenses : - Selling and administrative costs,…

Q: Which of the following is false? Select one: a. Day's sales in inventory is equal to the average…

A: The correct option is part (b), that is higher day’s sales in inventory means that inventory is less…

Q: If a company’s current ratio declined in a year during whichits quick ratio improved, which of the…

A: The current liabilities of the company are used to divide the current assets of the company to…