Presented below is financial information for two different companies.
|
May Company |
Reed Company |
|
|
Sales revenue |
$90,000 |
(d) |
|
Sales returns |
(a) |
$5,000 |
|
Net sales |
87,000 |
102,000 |
|
Cost of goods sold |
56,000 |
(e) |
|
Gross profit |
(b) |
41,500 |
|
Operating expenses |
15,000 |
(0 |
|
Net income |
(c) |
15,000 |
Instructions
(a) Determine the missing amounts.
(b) Determine the gross profit rates. (Round to one decimal place.)