do w me obj4 - PRACTICE 48 COMPUTATION OF GROSS PROFIT...

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- 8 COMPUTATION OF GROSS PROFIT Revenues $9,488.8 Cost of sales 5,784.9 Gross profit $3,703.9 Gross profit/Sales = $3,703.9/$9,488.8 = 39.0% PRACTICE 4 - 9 COMPUTATION OF OPERATING INCOME Revenues $9,488.8 Operating expenses: Cost of sales 5,784.9 Selling and administrative 2,689.7 Restructuring charge, net (Note 13) (0.1 ) Total operating expenses $8,474.5 Operating income $1,014.3 Operating income/Sales = $1,014.3/$9,488.8 = 10.7% PRACTICE 4 - 10 COMPUTATION OF INCOME FROM CONTINUING OPERATIONS Sales $10,000 Cost of goods sold 4,000 Gross profit $ 6,000 Less: Selling and administrative expense 1,750 Operating income $ 4,250 Interest expense 1,100 Income before income taxes $ 3,150 Income tax expense (40%) 1,260 Income from continuing operations $ 1,890 PRACTICE 4 - 11 COMPUTATION OF INCOME FROM DISCONTINUED OPERATIONS 2008 2007 Sales. .................................................................... $ 5,000 $4,600 Expenses. ............................................................ 4,400
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This note was uploaded on 06/04/2008 for the course HIST cis 101 taught by Professor Davison during the Spring '08 term at The School of the Art Institute of Chicago.

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do w me obj4 - PRACTICE 48 COMPUTATION OF GROSS PROFIT...

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