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).