The initial analysis should include the following:

• The ratio equation
• The calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook. (See below)
• Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income.
• Then explain whether this is a good result or a result that needs improving.
• Use citations to cite any outside sources used.
• The original post should include at least three (3) sentences but no more than seven (7) sentences.

SHOW WORK

QS 5-15 Computing and analyzing gross margin ratio A2 O Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies. Interpret the gross margin ratio for Carrier. Carrier Lennox Trane York Sales Sales discounts Sales returns and allowances Cost of goods sold $150,000 $550,000 $38,700 $255,700 5,000 17,500 600 4,800 20,000 6,000 5,100 900 79,750 329,589 24,453 126,500