Determine the profit margin ratio and the gross profit rate

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Reference no: EM13531718

Financial information is presented here for two companies.


Indig

Perez


Company

Company

Sales revenue

90,000

?

Sales returns

?

$5,000

Net sales

84,000

100,000

Cost of goods sold

58,000

?

Gross profit

?

40,000

Operating expenses

14,380

?

Net income

?

17,000

Instructions

(a) Fill in the missing amounts. Show all computations.

(b) Calculate the profit margin ratio and the gross profit rate for each company.

(c) Discuss your findings in part (b).

Reference no: EM13531718

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