Question

he following information is available for Buhler Company: Annual Data 2013 2012 Net sales $8,700,000 $8,100,000 Gross profit on sales 3,053,000 2,736,000 Net income 667,600 588,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total assets $6,500,000 $6,100,000 Stockholders' equity 3,900,000 3,300,000 Calculate the following ratios for 2013: Note: Round answers to one decimal place, unless otherwise noted. a. Gross profit percentage

Answer 1

35.09%

Explanation:

Data provided as per the question

Gross profit on sales = $3,053,000

Sales = $8,700,000

The computation of gross profit in percentage is as shown below:-

= Gross profit on sales ÷ Sales

= $3,053,000 ÷ $8,700,000

= 35.09%

Therefore, for computing the gross profit in percentage we simply divide the gross profit with sales.