Smith LLP make a profit of $3 million for the period ending 12/31/18. The gross profit % is 50% and the net income vertical analysis equals 10%. How much cash did Levinson LLP make? $3 million $1.5 million $300,000 None of the above
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The gross profit is given as a percentage of the revenue, so we can calculate the revenue by dividing the gross profit by the gross profit percentage: Revenue = Gross Profit / Gross Profit % = $3 million / 50% = $6 million Show more…
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