Uden supply Company declared a 31% increase in gross profit. The increase stated as a percentage is a misstatement and if calculated accordingly would result in a gross profit of $3,348 in thousands. However, Terrill believes that gross profit will be down 2% for 20x4 and according to calculations, the expected gross profit would then be $7,701. Gross profit for 20x3 is $3100. Divide gross profit by 20x3 sales and then multiply by 100 to get gross profit percentage of 30.69%. To calculate expected gross profit percent for 20x4, with a 2% decrease, subtract the 2% from 30.69%. The expected gross profit for 20x4 is $10,800, multiplied by 28.69% to arrive at gross profit of $3099. Cost of goods sold is calculated by subtracting 3,099 from 10,800, expected COGS for 20x4 is $7701. To calculate advertising expense as a percent of sales, 20x3 advertising expense of $202 divided by sales of 10100 equals .02. 20x4 sales are expected to be $10,800 multiplied by .02 to realize expected expense of $216. To calculate payroll taxes a sa percentage of salaries, 20x3 payroll taxes of $199 divided by salaries of $1103 results in .1804. For 20x4 expected salaries are at $1124, multiply that by .1804 resulting in payroll taxes of
Uden supply Company declared a 31% increase in gross profit. The increase stated as a percentage is a misstatement and if calculated accordingly would result in a gross profit of $3,348 in thousands. However, Terrill believes that gross profit will be down 2% for 20x4 and according to calculations, the expected gross profit would then be $7,701. Gross profit for 20x3 is $3100. Divide gross profit by 20x3 sales and then multiply by 100 to get gross profit percentage of 30.69%. To calculate expected gross profit percent for 20x4, with a 2% decrease, subtract the 2% from 30.69%. The expected gross profit for 20x4 is $10,800, multiplied by 28.69% to arrive at gross profit of $3099. Cost of goods sold is calculated by subtracting 3,099 from 10,800, expected COGS for 20x4 is $7701. To calculate advertising expense as a percent of sales, 20x3 advertising expense of $202 divided by sales of 10100 equals .02. 20x4 sales are expected to be $10,800 multiplied by .02 to realize expected expense of $216. To calculate payroll taxes a sa percentage of salaries, 20x3 payroll taxes of $199 divided by salaries of $1103 results in .1804. For 20x4 expected salaries are at $1124, multiply that by .1804 resulting in payroll taxes of