Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Question

Edition 9ISBN: 0073527068

Edition 9ISBN: 0073527068

Exercise 41

Step-by-step solution

Verified

Step 1 of 3

Step 2 of 3

Step 3 of 3

Answer 1

a.	Sales (in millions)	$141.6	100.0%
	Cost of goods sold	?	?.
	Gross profit	$ ?	31.6%
	Gross profit = ($141.6 million sales * 31.6% gross profit ratio) = $44.7 million Cost of goods sold = ($141.6 million sales - $44.7 million gross profit) = $96.9 million

Alternative computation for cost of goods sold:

$141.6 million sales * (100% - 31.6%) cost of goods sold ratio = $96.9 million