Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1.Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. The company's gross margin percentage for Year 2 is closest to:

Question

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1.Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.  The company's gross margin percentage for Year 2 is closest to:

Quizplus · Accepted Answer

Gross margin percentage = Gross margin ÷ Sales
= $510,000 ÷ $1,340,000 = 38.1% (rounded)

Garrott Corporation's Total Assets Were $1,505,000 at the End of Year