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22 October, 07:26

Suspendus Company has the following financial data for the year ended December 31, 2021: net sales $1,680,000, operating expenses $880,000, net income $104,000, stockholders' equity $800,000, and assets $1,901,000. The information for the year ended December 31, 2020 was: net sales $1,450,000, operating expenses $760,000, net income $87,000, stockholders' equity $700,000, and assets $1,601,000. Calculate the gross profit margin for the year ended December 31, 2021.

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  1. 22 October, 07:50
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    The gross profit margin for the year ended December 31, 2021 is 58,57%.

    Explanation:

    As per given information:

    2021

    Net Sales = $1,680,000

    Net Income = $104,000

    Operating expenses = $880,000

    Net Income = Gross Income - Operating Expenses

    $104,000 = Gross Income - $880,000

    Gross Income = $104,000 + $880,000

    Gross Income = $984,000

    Gross Profit Margin = (Gross income / Net sales) x 100

    Gross Profit Margin = (984,000 / 1,680,000) x 100

    Gross Profit Margin = 58.57%
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