Question Details

Sal- gross profit for August, 2008 


1. If a company has sales of $420,000, net sales of $400,000, and cost of goods sold of
$260,000, the gross profit rate is
a. 67%.
b. 65%
c. 35%.
d. 33%.
2. Ingrid- Fashions sold merchandise for $38,000 cash during the month of July. Returns
that month totaled $800. If the company- gross profit rate is 40%, Ingrid- will report
monthly net sales revenue and cost of goods sold of
a. $38,000 and $22,800.
b. $37,200 and $14,880.
c. $37,200 and $22,320.
d. $38,000 and $22,320.
Use the following information for questions 3-6.
During August, 2008, Sal- Supply Store generated revenues of $30,000. The company-
expenses were as follows: cost of goods sold of $12,000 and operating expenses of $2,000. The
company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000.
3. Sal- gross profit for August, 2008 is
a. $30,000.
b. $19,000.
c. $18,000.
d. $16,000.
4. Sal- nonoperating income (loss) for the month of August, 2008 is
a. $0.
b. $500.
c. $1,000.
d. $1,500.
5. Sal- operating income for the month of August, 2008 is
a. $30,000.
b. $19,500.
c. $18,500.
d. $16,000.
6. Sal- net income for August, 2008 is
a. $18,000.
b. $17,500.
c. $16,500.
d. $16,000.




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