The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Aldine Inc.as they appear on the company's adjusted trial balance.

-Use the information above to answer the following question.The gross profit percentage would be closest to:
A) 25.6%.
B) 31.5%.
C) 55.6%.
D) 68.5%.

Question

The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Aldine Inc.as they appear on the company's adjusted trial balance.
 
-Use the information above to answer the following question.The gross profit percentage would be closest to:
A) 25.6%. 
B) 31.5%. 
C) 55.6%. 
D) 68.5%.

Quizplus · Accepted Answer

To calculate the gross profit percentage, we need to first calculate the gross profit. Gross profit is calculated as revenue minus cost of goods sold. From the given information, we know that revenue is $850,000 and cost of goods sold is $580,000. Therefore, gross profit is $270,000.

To calculate the gross profit percentage, we divide gross profit by revenue and multiply by 100.

Gross profit percentage = (gross profit ÷ revenue) x 100
= ($270,000 ÷ $850,000) x 100 
= 31.76%

The closest answer choice to this is B, 31.5%.

The Following Is a Listing of Some of the Balance