The following information is available for the Cherryville Enterprises, Inc. for the fiscal year ended December 31.
$$\begin{array} { l r r }
\text { Reverulus } & \$ 900,000 \
\text { Gross margin } & \$ 315,000 \
\text { Operating profit } & 8 5 , 0 0 0 \
\text { Income tax rate }&32\%
\end{array}$$
Required:
(a) Compute the cost of goods sold.
(b) Compute the total marketing and administrative costs.
(c) Compute net income.

Question

The following information is available for the Cherryville Enterprises, Inc. for the fiscal year ended December 31.
 $$\begin{array} { l r r } 
\text { Reverulus } & \$ 900,000 \
\text { Gross margin } & \$ 315,000 \
\text { Operating profit } & 8 5 , 0 0 0 \
\text { Income tax rate }&32\%
\end{array}$$ 
Required:
(a) Compute the cost of goods sold.
(b) Compute the total marketing and administrative costs.
(c) Compute net income.

Quizplus · Accepted Answer

The Answer of The following information is available for the Cherryville Enterprises, Inc. for the fiscal year ended December 31.
 $$\begin{array} { l r r } 
\text { Reverulus } & \$ 900,000 \
\text { Gross margin } & \$ 315,000 \
\text { Operating profit } & 8 5 , 0 0 0 \
\text { Income tax rate }&32\%
\end{array}$$ 
Required:
(a) Compute the cost of goods sold.
(b) Compute the total marketing and administrative costs.
(c) Compute net income.

The Following Information Is Available for the Cherryville Enterprises, Inc