Reference no: EM133038683

Question - EAGLE INCORPORATED Income Statement For the Year Ended December 31

Sales Revenue $250,000

Less: Sales Returns and Allowances 10,000

Net Sales 240,000

Cost of Goods Sold 150,000

Gross Profit ?

Operating Expenses: Administrative Expense 15,000

Selling Expense 30,000 45,000

Income from Operations 45,000

Income Tax Expense 15,000

Net Income $30,000

Required -

1. What was the amount of gross profit? What was the gross profit percentage?

2. Did the gross profit percentage in the current year improve, or decline, relative to the 38.0 percent gross profit percentage in the prior year?