QUESTION 31 Tom Company which uses a perpetual inventory sys

QUESTION 31 Tom Company (which uses a perpetual inventory system) has the following account balances after adjusting entries at December 31, 2012: $227,000 100,000 120,000 105,000 350,000 880,0p0 67,000 120,000 27,000 10,000 47,000 85,000 erchandise Inventory (12/31/2012) Equipment Accounts Receivable Common Stock ($.50 par) Sales Rent Expense Bonds Payable (due 2040) Accounts Payable Dividends Treasury Stock, Common (19,000 shares) Preferred Stock 6% ($10 par) 260,000 Paid-in Capital in Excess of Par Value, Preferred Cost of Goods Sold Interest Expense 8,000 720,000 20,000 Click Save and Submit to save and submit. Click Save All Answers to sawe all answers esc OOD FA FS

Solution

Gross Profit = Sales - Cost of Goods Sold
Gross Profit = $880,000 - $720,000
Gross Profit = $160,000

Gross Margin Percent = Gross Profit / Sales
Gross Margin Percent = $160,000 / $880,000
Gross Margin Percent = 18%