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Financial information is presented here for two companies.
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).
The 2007 and 2008 balance sheets for Alan Jack and Sons showed net accounts receivable of $10,000 and $14,000, respectively, and inventory of $8,000 and $6,000, respectively. Their 2008 income statement showed net sales of $109,500 and cost of goo..
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