Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. gamma manufacturing earned operating income last y

Gamma Manufacturing earned operating income last year as shown in the following income statement: Sales...

90.2K

Verified Solution

Question

Accounting

image

Gamma Manufacturing earned operating income last year as shown in the following income statement: Sales $3,750,000 Cost of goods sold 2,250,000 Gross margin $1,500,000 Selling and administrative expense 1,200,000 Operating income $ 300,000 Less: Income taxes (@ 40%) 120,000 Net income $ 180,000 At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. Total capital employed equaled $1,200,000. Gamma's actual cost of capital is 4%. O $132,000 O $240,000 $252,000 $120,000 Gamma Manufacturing earned operating income last year as shown in the following income statement: Sales $3,750,000 Cost of goods sold 2,250,000 Gross margin $1,500,000 Selling and administrative expense 1,200,000 Operating income $ 300,000 Less: Income taxes (@ 40%) 120,000 Net income $ 180,000 At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. Total capital employed equaled $1,200,000. Gamma's actual cost of capital is 4%. O $132,000 O $240,000 $252,000 $120,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

describe how a clrician can determine that a patient has allergies to house mites. ?

Biology
Q

suppose you want to determine the mean number of cans of soda drunk each month by...

Basic Math
Q

A 7 10 n AUB n Anc n An BnC Determine the following cardinalities n...

Basic Math
Q

The length of one side s of a shipping box is s x 2x where...

Basic Math
Q

Wrote her essay by hand instead of on the computer, Ingrid was able to concentrate...

Basic Math
Q

Balance Sheet (as of 930?22) Assets Cash Accounts Receivables Inventory Prepaid expenses...

Accounting
Q

The detuc tesira for M Must ecoese beoer Requlred: Calculate the company's revenue and spending...

Accounting
Q

10. The manager of UPTOWN hotel wants to yield a total of $10,000 by investing...

Accounting
Q

1. What is the standard labor -hours allowed (SH) to ship 130,000 items to customers?...

Accounting
Q

The basic concept of "substance over form" influence lease accounting. Explain in detail how it...

Accounting
Q

A $25,000, 6% bond redeemable at par with interest payable annually is bought 12.5 years...

Finance
Q

Reading a stock quote, you see that Builtrite pays an annual dividend of $2.00 and...

Finance