Peartree Ltd provides the following extracts from its income statement for the year 2016: $$\begin{array} { | l | l | }
\hline \text { Net sales } & \$ 560,000 \
\hline \text { Cost of sales } & ( 200,000 ) \
\hline \text { Gross profit } & \$ 360,000 \
\hline
\end{array}$$ Calculate the gross profit percentage.
A)64.29%
B)100%
C)35.71%
D)45%

Question

Peartree Ltd provides the following extracts from its income statement for the year 2016: $$\begin{array} { | l | l | } 
\hline \text { Net sales } & \$ 560,000 \
\hline \text { Cost of sales } & ( 200,000 ) \
\hline \text { Gross profit } & \$ 360,000 \
\hline
\end{array}$$ Calculate the gross profit percentage.
A)64.29%
B)100%
C)35.71%
D)45%

Quizplus · Accepted Answer

Gross profit percentage is calculated as (Gross Profit / Net Sales) * 100 = (360,000 / 560,000) * 100 = 64.29%.

Peartree Ltd Provides the Following Extracts from Its Income Statement