Module4 HW_Assignment
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Assume the average cost of computer equipment fell 17.5 percent between 2016 and 2017. Let's see whether these changes are
reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017
2017
2016
10
points
Sales Revenues
$99,100
$117,488
Cost of Goods Sold
61,100
70,493
Gross Profit
38,000
46,995
Selling, General, and Administrative Expenses
32,300
32,300
Interest Expense
570
448
Income Before Income Tax Expense
5,130
14,247
Income Tax Expense
2,800
4,545
Net Income
$ 2,330
$ 9,702
Required:
1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place.)
2017
2015
Gross profit
38.3
40.0%
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