Concept #1: Ratios: Gross Profit Percentage

Practice: If XYZ Company has net sales of $500,000 and cost of goods sold of $320,000, the gross profit percentage is:

Practice: A company has sales of $300,000 and gross profit of $135,000. What is the company’s cost of goods sold?

Practice: A company has sales of $300,000 and gross profit of $135,000. What is the gross profit percentage?

Given the information below for The Great Mall of the Great Plains, what is The Great Mall's Gross Profit Percentage?
Net Sales $300,000
Cost of Goods Sold $170,000
Net Income $60,000
a. 20%
b. 23.3%
c. 43.3%
d. 56.7%

What is the gross margin ratio for this company?
a. 52.91%
b. 18.75%
c. 47.0%
d. 15.0%

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%