Question

Advertising 2,800 Beginning of year inventory 37,800 Depreciation 1,300 End of year inventory 38,200 General and administrative expenses 5,100 Gross sales 145,600 Interest expense 5,000 Lease payments 2,600 Management salaries 39,500 Purchases 41,600 Research and development 7,800 Returns and allowances 8,100 Taxes 16,200. What was gross profit from income statement for the year ending December 31, 2017? 2. What was operating profit (i.e., EBIT) from Delicious Dishes income statement for the year ending December 31, 2017?

Answer 1

Gross Profit: $136.200

Operating Profit: $ 78.400

Step-by-step explanation:

Gross Margin income statement

• Sales $ 145.600

• Return & Allowance -$ 8.100

• Depreciation -$ 1.300

Gross Profit $ 136.200

• GAV Expenses -$ 5.100

• Lease Expenses -$ 2.600

• Management Expenses -$ 39.500

• R&D Expenses -$ 7.800

• Advertising Expenses -$ 2.800

EBIT $ 78.400

• Interest Expenses -$ 5.000

EBT $ 73.400

• Taxes Expenses -$ 16.200

Net Income $ 57.200