The following information is taken from the financial statements of Clybourn Company for the current year: $\begin{array}{lr}
\text { Current Assets } & \$ 32,000 \
\text { Total Assets } & 1,424,000 \
\text { Cost of Goods Sold } & 1,040,000 \
\text { Gross Profit } & 320,000 \
\text { Net Income } & 192,000
\end{array}$ The gross profit percentage for the current year rounded to the nearest whole percent is closest to:
A)24%.
B)76%.
C)60%.
D)31%.

Question

Quizplus · Accepted Answer

Gross profit percentage is calculated as (Gross Profit / Sales) * 100. Sales can be found by adding Gross Profit to Cost of Goods Sold, which is $1,360,000. Thus, the percentage is ($320,000 / $1,360,000) * 100 = 23.53%, rounded to 24%.

The Following Information Is Taken from the Financial Statements of Clybourn