Ms$.$ Kane, the china and glass buyer of Crystal Clear, Inc., was asked to present a yearly profit and loss statement to the divisional merchandise manager $.$ In addition $,$ she wanted to prepare a summary of comments that included a comparison of her performance with that of her major competitor $,$ China Seas, Ltd$.$ Ms$.$ Kane obtained the following information from Crystal Clear's statistical department : Gross sales $$135,000$ Customer Returns and Allowances $ $15,000$ Opening Inventory $$49,500$ Closing Inventory $$61,000$ New Purchases $$77,500$ Inward freight $ $1,500$ Cash Discounts $4$ Alteration and workroom costs $$1,000$ Direct Expenses $$11,000$ Indirect expenses $$37,600$ Ms$.$ Kane obtained $,$ from outside research $,$ profit and loss data on her competitor $,$ China Seas $,$ which had the following results for the same year: Profit $6\%$ or $$7,350$ Operating Expenses $40\%$ Help Ms$.$ Kane in developing the full profit and loss statement for Crystal ClearIn addition $,$ calculate the company's standings with the competitor Crystal Clear needs to make any changes to increase profitability $,$ where do you suggest those changes should be made $?$ How can Ms$.$ Kane propose that these changes would change the company's position with the competitor $?$

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ANSWER To develop a full profit and loss statement for Crystal Clear Inc and compare its performance with the competitor China Seas Ltd we need to cal... View the full answer