The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014
Income statement
Sales Revenue 190,900 167,300
Cost of goods sold 113,000 102,000
Gross Profit 77,900 65,300
Operating expenses and interest expense 56,700 53,700
Pretax income 21,200 11,600
Income Tax 6,200 3,100
Net Income 15,000 8,500
Balance Sheet
Cash 4,600 6,500
Accounts Receivable (net) 15,300 16,900
Inventory 40,300 32,600
Operational Assets (net) 46,400 36,400
106,600 92,400
Current liabilities (no interest) 15,100 16,100
Long-term liabilities (10%interest) 44,900 44,900
Common Stock (par $5) 29,900 29,900
Retained Earnings 16,700 1,500
106,600 92,400
1. Present component percentages for 2015 only.
2. Respond to the following for 2015:
What was the gross profit percentage?

Prince Company

1. Component percentages for 2015:

Income statement              2015      Percentage

Sales Revenue             190,900          100%

Cost of goods sold       113,000            59% (113,000/190,900 * 100)      

Gross Profit                    77,900             41% (77,900/190,900 * 100)

Operating expenses and

interest expense         56,700             30% (56,700/190,900 * 100)            

Pretax income               21,200              11% (21,200/190,900 * 100)

Income Tax                     6,200               3% (6,200/190,900 * 100)

Net Income                   15,000               8% (15,000/190,900 * 100)  

Balance Sheet                                   2015      Percentage

Cash                                                 $4,600     4.3% (4,600/106,600 * 100)  

Accounts Receivable (net)               15,300    14.4% (15,300/106,600 * 100)    

Inventory                                          40,300    37.8% (40,300/106,600 * 100)    

Operational Assets (net)                 46,400    43.5% (46,400/106,600 * 100)

Total                                               106,600    100%    

Current liabilities (no interest)        15,100       14.2% (15,100/106,600 * 100)  

Long-term liabilities (10%interest) 44,900      42.1% (44,900/106,600 * 100)

Common Stock (par $5)               29,900        28% (29,900/106,600 * 100)  

Retained Earnings                         16,700        15.7% (16,700/106,600 * 100)  

Total                                            106,600       100%  

2. Gross profit percentage for 2015:   41%

Explanation:

a) Data and Calculations:

Income statement              2015           2014

Sales Revenue             190,900      167,300

Cost of goods sold       113,000      102,000

Gross Profit                    77,900       65,300

Operating expenses and

interest expense         56,700        53,700

Pretax income               21,200         11,600

Income Tax                     6,200          3,100

Net Income                   15,000         8,500

Balance Sheet

Cash                                                 $4,600    $6,500

Accounts Receivable (net)               15,300     16,900

Inventory                                          40,300    32,600

Operational Assets (net)                 46,400    36,400

Total                                               106,600    92,400

Current liabilities (no interest)        15,100      16,100

Long-term liabilities (10%interest) 44,900    44,900

Common Stock (par $5)               29,900    29,900

Retained Earnings                         16,700        1,500

Total                                            106,600     92,400

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