A Company Reported the Following Information for the Month of July

question 71

Essay

A company reported the following information for the month of July:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 50,475 \\\hline \text { Sales discounts } & 1,23 \\\hline \text { Sales returns and allowances } & 2,840 \\\hline \text { Cost of goods sold } & 33,975 \\\hline\end{array}$$ Required: Calculate this company's gross profit.

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Definitions:

Eligible Dividends

Dividends that are designated by a corporation to be eligible for a lower tax rate for the receiver, depending on jurisdiction.

Average Tax Rate

The percentage of total income that goes to taxes, calculated by dividing the total amount of tax paid by the total income.

Taxable Income

The sum of earnings that determines the tax liability of a person or corporation to the state.

Marginal Provincial Tax Rate

The percentage of tax applied to your next dollar of income, specific to the tax brackets determined by a Canadian province.