25 - M6-1 a Airline tickets sold by an airline on a credit...

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M6-1 a. Airline tickets sold by an airline on a credit card completion of flight b. Computed sold by mail order company on a credit card shipment c. Sale of inventory to a business customer on open account shipment M6-2 $2000 (.02*2,000) - 40 1,960 E6-3 Sales Revenue $11,400 Less: Sales Returns 600 Less: Sales Discounts 162 Less: Credit Card Discounts 8 Net Sales $10,630 E6-7 Slate Incorporated Income Statement For the Year Ended December 31, 2007 Gross Sales $252,000 Less Sales Returns 7,000 Net Sales Revenue 245,000 Cost of Goods Sold 147,000 Gross Profit 98,000 Operating Expenses Administrative 19,000 Selling 40,200 Bad Debt 800 Total Operating Expenses 60,000 Income from Operations 38,000 Income Tax 11,400 Net Income $26,600 Earnings Per Share [26,000 / 5,000shares] $5,32 Gross Profit Margin = net sales revenue – cost of goods sold = $245,000 - $147,000 = $98,000 Gross Profit Percentage Ratio = gpm / net sales revenue = $98,000 / $245,000 = 40%
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Gross profit margin is the difference between the sales price and the cost of these sales.
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