Guynn Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $10 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.05 per share.
-The gross margin percentage for Year 2 is closest to:
A) 1054.5%
B) 45.3%
C) 82.9%
D) 9.5%

Question

Guynn Corporation's most recent balance sheet and income statement appear below:   Dividends on common stock during Year 2 totaled $10 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.05 per share.
-The gross margin percentage for Year 2 is closest to:
A) 1054.5% 
B) 45.3% 
C) 82.9% 
D) 9.5%

Quizplus · Accepted Answer

Gross margin percentage = (Gross profit / Net sales) x 100
= (280,000 / 620,000) x 100
= 45.16%
Therefore, the gross margin percentage for Year 2 is closest to B) 45.3%.

Guynn Corporation's Most Recent Balance Sheet and Income Statement Appear