Question

​Coleman, Inc. provides the following data from its income statement for​ 2017:Net Sales​$500,000Cost of Goods Sold​(200,000)Gross Profit​$300,000Calculate the gross profit percentage.​ (Round your answer to two decimal​ places.)

Answer 1

Answer: 60 %

Explanation: Gross profit refers to the amount of profit that a company has after deducting for making and selling charges.

Gross profit percentage or gross profit ratio refers to the ratio of gross profit and net sales. It is used to evaluate how much gross profit does a company makes from its sales. It is a good measure for evaluating liquidity.

This could be calculated as follows :-

`gross\:profit\:ratio=(gross\:profit)/(net\:sales)`

`gross\:profit\:ratio=(300,000)/(500,000)`

=60 %