The following information is available for All-4-U Company for the year ending December 31,2012:
$\begin{array}{llll}
\text { Net Sales } & \$ 5,000,000 & \text { Accounts Receivable December 31, 2011 } & \$ 1,250,000\
\text { Cost of goods sold } & \$ 3,500,000 & \text { Accounts Receivable December } 31,2012 & \$ 1,000,000\
\text { Operating Income } & \$ 600,000 & \
\text { Net Income } & \$ 400,000
\end{array}$ A) Compute the gross profit ratio for 2012.

Question

The following information is available for All-4-U Company for the year ending December 31,2012:
 $\begin{array}{llll}
\text { Net Sales } & \$ 5,000,000 & \text { Accounts Receivable December 31, 2011 } & \$ 1,250,000\
\text { Cost of goods sold } & \$ 3,500,000 & \text { Accounts Receivable December } 31,2012 & \$ 1,000,000\
\text { Operating Income } & \$ 600,000 & \
\text { Net Income } & \$ 400,000 
\end{array}$ A) Compute the gross profit ratio for 2012.

Quizplus · Accepted Answer

The Answer of The following information is available for All-4-U Company for the year ending December 31,2012:
 $\begin{array}{llll}
\text { Net Sales } & \$ 5,000,000 & \text { Accounts Receivable December 31, 2011 } & \$ 1,250,000\
\text { Cost of goods sold } & \$ 3,500,000 & \text { Accounts Receivable December } 31,2012 & \$ 1,000,000\
\text { Operating Income } & \$ 600,000 & \
\text { Net Income } & \$ 400,000 
\end{array}$ A) Compute the gross profit ratio for 2012.

The Following Information Is Available for All-4-U Company for the Year