Question

Metlock, Inc. reported the following in its 2025 and 2024 income statements. 2025 2024 Net sales $146,000 $116,000 Cost of goods sold 80,300 63,800 Operating expenses 33,580 12,760 Income tax expense 20,850 12,470 Net income $11,270 $26,970 (a1) Determine the company's gross profit rate and profit margin for both years. (Round answers to 1 decimal place, e.g. 52.7%.) 2025 2024 Gross profit rate % % Profit margin % %

          Metlock, Inc. reported the following in its 2025 and 2024 income statements.
2025
2024
Net sales
$146,000
$116,000
Cost of goods sold
80,300
63,800
Operating expenses
33,580
12,760
Income tax expense
20,850
12,470
Net income
$11,270
$26,970
(a1) Determine the company's gross profit rate and profit margin for both years. (Round answers to 1 decimal place, e.g. 52.7%.)
2025
2024
Gross profit rate
%
%
Profit margin
%
%

Metlock, Inc. reported the following in its 2025 and 2024 income statements.
2025
2024
Net sales
146,000116,000
Cost of goods sold
80,300
63,800
Operating expenses
33,580
12,760
Income tax expense
20,850
12,470
Net income
11,27026,970
(a1) Determine the company's gross profit rate and profit margin for both years. (Round answers to 1 decimal place, e.g. 52.7%.)
2025
2024
Gross profit rate
%
%
Profit margin
%
%

Added by Joseph L.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

09/11/2023

Step 1

Gross profit = Net sales - Cost of goods sold Gross profit (2025) = $146,000 - $80,300 = $65,700 Gross profit (2024) = $116,000 - $63,800 = $52,200 Show more…

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Metlock, Inc. reported the following in its 2025 and 2024 income statements. 2025 2024 Net sales $146,000 $116,000 Cost of goods sold 80,300 63,800 Operating expenses 33,580 12,760 Income tax expense 20,850 12,470 Net income $11,270 $26,970 (a1) Determine the company's gross profit rate and profit margin for both years. (Round answers to 1 decimal place, e.g. 52.7%.) 2025 Gross profit rate Profit margin 2024 % % % %