The following information is taken from the financial statements of a company for the current year: 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

The following information is taken from the financial statements of a company for the current year:  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%.

Quizplus · Accepted Answer

To calculate the gross profit percentage, we need to use the formula:

Gross profit percentage = (Gross profit/Revenue) x 100

Looking at the financial statements, we can see that the gross profit for the current year is $180,000 and the revenue is $750,000.

Plugging in these values, we get:

Gross profit percentage = ($180,000/$750,000) x 100 = 24%

Therefore, the closest whole percentage for the gross profit percentage for the current year is 24%. So, the best choice is A.

The Following Information Is Taken from the Financial Statements of a Company