Below are amounts found in the income statements of three companies?

Required:
1. For each company, calculate
(a) Gross profit,
(b) Operating income,
(c) Income before income taxes,
(d) Net income.
2. For each company, calculate the gross profit ratio and indicate which company has the most favorableratio.

Transcribed Image Text:

Sales Cost of Company Revenue Goods Sold Expenses Henry Grace James $32,000 35,000 40,000 S 4,800 24,500 24,800 Operating Nonoperating Incoe Tax Expenses $2,000 7,000 5,000 13,100 3,000 Expense $2,000 3,000