The following income statements were drawn from the annual reports of the Pines Company and the Yew
Question:
The following income statements were drawn from the annual reports of the Pines Company and the Yew Company:
Required
a. One of the companies is a high-end retailer that operates in exclusive shopping malls. The other operates discount stores that are located in low-cost, stand-alone buildings. Identify the high-end retailer and the discounter. Support your answer with appropriate ratios.
b. If Pines and Yew have equity of $16,200 and $20,400, respectively, which company is in the more profitablebusiness?
Transcribed Image Text:
Pines Yew Net sales Cost of goods sold Gross margin Less: Operating exp 32,600 17,930 14,670 S86,200 64,650 21,550 Selling and admin exp Net income 13,040 S 1,630 18,960 $ 2,590 All figures are reported in thousands of dollars
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a Gross Margin Percentages Pines 45 14670 32600 Yew 25 21550 86200 ReturnonSales Rat...View the full answer
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Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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