Income statement information is presented here for two companies:

	Davis Ltd.	Ryan Inc.
Sales	$106,000	[6]
Sales returns and allowances	[1]	8,000
Net Sales	100,000	109,000
Cost of goods sold	44,000	[7]
Gross profit	[2]	63,000
Operating expenses	22,500	[8]
Income from operations	[3]	32,000
Other revenues	2,250	0
Other expenses	0	2,500
Income before income tax	[4]	[9]
Income tax expense	4,000	[10]
Net income	[5]	24,500

Required:

1. Calculate the missing amounts for items [1] to [10].

2. Calculate the gross profit margin and profit margin for each company.