Financial Accounting Fundamentals | Online Course Support

Company A has the following information excerpted from its financial statements: Which of the following statements is correct?

 
 
 
 
 
 

Correct answer. Gross margin (gross profit): 27,300 (Year 1 & Year 2). Gross margin ratio = gross margin/revenue. Year 1: 27,300/92,300 = 29.58%; Year 2: 27,300/93,600 = 29.17%; Year 3: 32,500/101,400 = 32.05%.

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