This is a FIVE-PART question: Review the document pictured b…
This is a FIVE-PART question: Review the document pictured below. (It is retyped after the questions if you have trouble viewing the picture.) (3 points for each question). 1. What kind of financial report is this? 2. What do reports like this show? 3. What were the total operating expenses? 4. How are the gross profits calculated? 5. What is the gross profit margin for this business? ============================================================================================= Sales $800,000 Cost of goods sold (550,000) Gross profits $300,000 Operating expenses: Marketing expenses $90,000 General and administrative expenses 80,000 Depreciation 30,000 Total operating expenses $200,000 Operating profits $100,000 Interest expense (20,000) Profits before taxes $80,000 Income taxes (25%) (20,000) Net profits $60,000 Dividends paid (15,000) Addition to retained earnings $45,000
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