The comparative financial statements of Seward,Inc.include the following data: The gross profit percentage for the current year is closest to:
A)42%.
B)13.5%.
C)57.7%.
D)21.15%.

Question

The comparative financial statements of Seward,Inc.include the following data:  The gross profit percentage for the current year is closest to:
A)42%. 
B)13.5%. 
C)57.7%. 
D)21.15%.

Quizplus · Accepted Answer

To calculate the gross profit percentage, we divide gross profit by net sales and then multiply by 100 to get a percentage.

For the current year: 
Gross profit = $316,000 
Net sales = $548,000

Gross profit percentage = (Gross profit / Net sales) x 100 
Gross profit percentage = (316,000 / 548,000) x 100 
Gross profit percentage = 57.66% ≈ 57.7%

Therefore, the closest answer choice is (C) 57.7%.

The Comparative Financial Statements of Seward,Inc