In 2014, Rooney Company Had Net Sales of $600,000 and Cost

question 196

Essay

In 2014, Rooney Company had net sales of $600,000 and cost of goods sold of $360,000. Operating expenses were $150,000, and interest expense was $15,000.
Instructions
(a) Compute Rooney's gross profit.
(b) Compute the gross profit rate.
(c) What is Rooney's income from operations and net income?

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Definitions:

Ultrabook

A full-featured but lightweight laptop computer that features a low-power processor and a solid-state drive; it tries to reduce its size and weight to extend battery life without sacrificing performance.

Permanent Storage

Data storage devices or media that retain information permanently or for extended periods without power.

Random Access Memory

A type of computer memory that can be accessed randomly, used to store working data and machine code currently in use.

MIDI

Musical Instrument Digital Interface, a standard protocol for the interchange of musical information between musical instruments, computers, and other devices.