Financial Statement Analysis—Ratios
Shawn O’Neil owns two businesses, a Dr.ug store and a retail department store.
|
Dr.ug Store |
Department Store |
|
|
Net sales |
$1,050,000 |
$670,000 |
|
Cost of goods sold |
950,000 |
560,000 |
|
Other expenses |
39,500 |
66,500 |
Which business earns more income? Which business has the higher gross profit percentage?
Return on sales? Which business would you consider more profitable?