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3 June, 06:32

The following information is taken from the financial statements of Clybourn Company for the current year:

Current Assets $ 632,000

Total Assets 1,424,000

Cost of Goods Sold 1,040,000

Gross Profit 320,000

Net Income 192,000

The gross profit percentage for the current year rounded to the nearest whole percent is closest to?

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  1. 3 June, 08:52
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    23.53% or 24% (Approx)

    Explanation:

    Given that,

    Current Assets = $632,000

    Total Assets = 1,424,000

    Cost of Goods Sold = 1,040,000

    Gross Profit = $320,000

    Net Income = 192,000

    Sales revenue = Cost of goods sold + Gross profit

    = $1,040,000 + $320,000

    = $1,360,000

    Gross profit margin = (Gross Profit : Sales) * 100

    = (320,000 : 1,360,000) * 100

    = 0.23529 * 100

    = 23.53% or 24% (Approx)
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