Exercise 5-08 a-b Financial information for two companies are presented below.

Fill in the missing amounts.

		Metlock, Inc.		Larkspur, Inc.
Sales revenue		$86,000		$enter a dollar amount
Sales returns and allowances		enter a dollar amount		4,600
Net sales		80,000		102,000
Cost of goods sold		53,600		enter a dollar amount
Gross profit		enter a subtotal of the two previous amounts		36,720
Operating expenses		14,400		enter a dollar amount
Net income		enter a total net income		17,340

Calculate the profit margin and the gross profit rate for each company. (Round answers to 0 decimal places, e.g. 15%.)

		Metlock, Inc.			Larkspur, Inc.
Profit margin		enter percentages rounded to 1 decimal place	%		enter percentages rounded to 1 decimal place	%
Gross profit rate		enter percentages rounded to 1 decimal place	%		enter percentages rounded to 1 decimal place	%

Answer rating: 100% (QA)

To fill in the missing amounts and calculate the profit margin and gross profit rate we can use the ... View the full answer