Ratios: Gross Profit Rate Video Lessons

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Problem: L Company reported the following results for the year: Sales                                                $ 2,000,000 Gross Profit                                            900,000 Net Income                                             360,000 Cash from Operating Activities               720,000 L Company’s gross profit rate was: a) 45% b) 40% c) 18% d) 36%

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Problem Details

L Company reported the following results for the year:

Sales                                                $ 2,000,000
Gross Profit                                            900,000
Net Income                                             360,000
Cash from Operating Activities               720,000

L Company’s gross profit rate was:

a) 45%

b) 40%

c) 18%

d) 36%

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