Attached is an image with the question and the table. I got 39% by dividing gross profit by gross sales. But does the Cash dividends declared have any affect on the final answer?

Given below (image) are comparative balance sheets and an income statement for Garnet Corporation.

All sales were made on account. Cash dividends declared during the year totaled $8,840.
Refer to the above data. (Image) Garnet Corporation's gross profit rate for 2007 (rounded) is:

The calculation is GM / Sales

Dividends you pay out have no barring on your Gross Margin.

So, 39.9% is the correct answer….GM / Sales

Sales: $150,000
COGS: 70,000
Fixed expenses: 25,000
Delivery: 5,000
What is the Profitabilty rate

Sales: $150,000
COGS: 70,000
Fixed expenses: 25,000
Delivery: 5,000
What is the Profitabilty rate

Please start your own thread instead of hijacking someone else's. I just wasted my time reading the first post just to discover there's a whole new post having nothing to do with it.

Also go to the top of this forum and read the big read notice that contains our guidelines on posting homework problems.

Morgaine300, First of all that was not my home work and secondly you are really taking this site to serious, you really need to get a life. Third of all who died and made you a police.

I just love it when newbies think they know better than the rest of us.

Most of the people around here do not like someone coming on and hijacking other threads for their own topics. The "police" around here will tell you the same thing.

I'm terribly sorry for assuming something posted in the homework forum might actually be homework.