Lumber Liquidators, Inc., competes with Lowe€™s in product lines such as hardwood flooring, moldings, and noise- reducing underlay. The two companies reported the following financial results in fiscal 2013:

Required:
1. Calculate the difference in gross profit percentage between Lumber Liquidators and Lowe€™s.
2. Calculate the difference in net profit margin between Lumber Liquidators and Lowe€™s.
3. Using your answers to requirements 1 and 2, identify the company that best controls operating expenses other than cost of goods sold.

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Lumber Liquidators Lowe's Gross profit percentage Net profit margin Return on equity Earnings per share 41.1% 7.7% 28.5% $ 2.77 34.6% 4.3% 17.8% s 2.18