Question

Consider the following incomplete income statement:
Sales=$2,531,700.00
COGS=39.00% of sales
Gross Profit Margin=61.00% of sales
Selling & Administrative=$704,250.00
Depreciation & Amortization=$?????
Operating Profit Margin=12.00%
What is the gross profit for 2023?

Answer 1

To calculate the gross profit for 2023, we can use the provided information about sales and the gross profit margin.

1. **Sales**: $2,531,700.00
2. **Gross Profit Margin**: 61.00% of sales

To find the gross profit, we apply the gross profit margin to the sales:

\[
\text{Gross Profit} = \text{Sales} \times \text{Gross Profit Margin}
\]

\[
\text{Gross Profit} = 2,531,700.00 \times 0.61
\]

Calculating that:

\[
\text{Gross Profit} = 2,531,700.00 \times 0.61 = 1,545,757.00
\]

Thus, the gross profit for 2023 is **$1,545,757.00**.

Answer 2

What is the operating profit for 2023?

Answer 3

To calculate the operating profit for 2023, we can use the information provided regarding the sales, the operating profit margin, and the expenses.

### Given Information:
- **Sales**: $2,531,700.00
- **Operating Profit Margin**: 12.00%

### Step 1: Calculate Operating Profit
Operating profit can be calculated by multiplying the sales by the operating profit margin:

\[
\text{Operating Profit} = \text{Sales} \times \text{Operating Profit Margin}
\]

\[
\text{Operating Profit} = 2,531,700.00 \times 0.12
\]

Calculating that:

\[
\text{Operating Profit} = 2,531,700.00 \times 0.12 = 303,804.00
\]

### Conclusion
The operating profit for 2023 is **$303,804.00**.

Answer 4

What is the cost of goods sold for 2023?

Answer 5

To calculate the Cost of Goods Sold (COGS) for 2023, we can use the provided information about sales and the percentage of COGS relative to sales.

### Given Information:
- **Sales**: $2,531,700.00
- **COGS**: 39.00% of sales

### Step 1: Calculate COGS
COGS can be calculated using the formula:

\[
\text{COGS} = \text{Sales} \times \text{COGS \%}
\]

Substituting the values:

\[
\text{COGS} = 2,531,700.00 \times 0.39
\]

Calculating that:

\[
\text{COGS} = 2,531,700.00 \times 0.39 = 986,163.00
\]

### Conclusion
The Cost of Goods Sold (COGS) for 2023 is **$986,163.00**.

Answer 6

What is the depreciation and amortization for 2023?

Answer 7

To determine the Depreciation and Amortization for 2023, we need to consider the operating profit calculated earlier, as well as the total expenses involved in arriving at the operating profit. Here’s a step-by-step approach:

### Given Information:
- **Sales**: $2,531,700.00
- **COGS**: $986,163.00 (already calculated)
- **Selling & Administrative Expenses**: $704,250.00
- **Operating Profit Margin**: 12.00%
- **Calculated Operating Profit**: $303,804.00 (already calculated)

### Step 1: Calculate Total Expenses
We know the Operating Profit can be calculated using the formula:

\[
\text{Operating Profit} = \text{Gross Profit} - \text{Total Expenses}
\]

However, since Gross Profit is not directly provided here, we can rearrange to use the following formulas:

\[
\text{Gross Profit} = \text{Sales} - \text{COGS}
\]

Then we can find Total Expenses using:

\[
\text{Total Expenses} = \text{Selling & Administrative} + \text{Depreciation & Amortization}
\]

### Step 2: Calculate Gross Profit
From our previous calculations:

\[
\text{Gross Profit} = \text{Sales} - \text{COGS}
\]
\[
\text{Gross Profit} = 2,531,700.00 - 986,163.00 = 1,545,537.00
\]

### Step 3: Calculate Total Expenses
Now we will rearrange the formula for Operating Profit:

\[
\text{Operating Profit} = \text{Gross Profit} - \text{Total Expenses}
\]
\[
\text{Total Expenses} = \text{Gross Profit} - \text{Operating Profit}
\]

Substituting our values:

\[
\text{Total Expenses} = 1,545,537.00 - 303,804.00 = 1,241,733.00
\]

### Step 4: Calculate Depreciation and Amortization
From our calculation, we know:

\[
\text{Total Expenses} = \text{Selling & Administrative} + \text{Depreciation & Amortization}
\]

Substituting known values:

\[
1,241,733.00 = 704,250.00 + \text{Depreciation & Amortization}
\]

Rearranging the equation gives us:

\[
\text{Depreciation & Amortization} = 1,241,733.00 - 704,250.00
\]
\[
\text{Depreciation & Amortization} = 537,483.00
\]

### Conclusion
The Depreciation and Amortization for 2023 is **$537,483.00**.