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    Accounting Income Statement Technologies

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    Profitability measures
    Shown below is a recent income statement for SEC Technologies. (Dollar amounts are in thousands.)

    SEC Technologies
    Income Statement
    For the Year Ended January 31, 2001

    Net Sales... $3,000,000
    Less: Cost of goods sold...... 1,650,000
    Gross profit........... $1,350,000
    Less: Operating expenses.... 950,000
    Operating income... $ 400,000

    Less: Non-operating expenses:
    Interest expense $50,000
    Income taxes expense... 140,000 190,000
    Net earnings... $210,000

    Assume that comparative balance sheet for SEC Technologies indicate average total assets for the year of $2,5000,000, and average total equity of $1,050,000(dollar amounts in thousands). Compute the following

    A) Gross profit rate __________%
    B) Net income as a percentage of net sales________%
    C) Return on assets ________%
    D) Return on equity ________%

    Profitability measures
    Shown below is a recent income statement for SEC Technologies. (Dollar amounts are in thousands.)

    SEC Technologies
    Income Statement
    For the Year Ended January 31, 2001

    Net Sales... $3,000,000
    Les:Cost of goods sole 1,650,000

    © BrainMass Inc. brainmass.com June 3, 2020, 5:14 pm ad1c9bdddf
    https://brainmass.com/business/accounting/accounting-income-statement-technologies-18918

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    Solution Preview

    A) Gross profit rate = Gross profit / Net Sales =1,350,000/3,000,000=45%
    B) Net ...

    Solution Summary

    The expert examines income statement technolgies. Net sales and SEC technologies are given.

    $2.19

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