Question

Assume Concord Corporation has the following reported amounts: Sales revenue $1,000,000, Sales returns and allowances $29,000, Cost of goods sold $657,367, and Operating expenses $215,600. (a) Compute net sales. Net sales $enter net sales in dollars (b) Compute gross profit. Gross profit $enter gross profit in dollars (c) Compute income from operations. Income from operations $enter Income from operations in dollars (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.)

Answer 1

Concord Corporation

(a) Net sales $971,000

(b) Gross profit $313,633

(c) Income from operations $98,033

(d) Gross profit rate = 313,633/971,000 * 100

= 32.3

Step-by-step explanation:

a) Data and Calculations:

Sales revenue $1,000,000

Sales returns and allowances $29,000

Net Sales $971,000

Cost of goods sold $657,367

Gross profit 313,633

Operating expenses $215,600

Income from operations $98,033