Question

Financial information for two companies are presented below. CALCULATOR COURCES napter 5 Fill in the missing amounts. -08 -09 - 10 -11 Sales revenue Whispering Winds Corp. Metlock, Inc. $88,000 b Sales returns and allowances 4,800 Net sales Study 82,000 104,000 Cost of goods sold 53,300 Gross profit 38,480 Operating expenses 14,760 Net income 19,760 Calculate the profit margin and the gross profit rate for each company. (Round answers to o decimal place Whispering Winds Corp. Metlock, Inc. % Profit margin Gross profit rate % Click if you would like to Show Work for this question nnen show Work

Answer 1

FIRST COMPANY

cost of PROFIT GROSS good sold = Net sales cogs 53,300 Z 88000 $28.700 gross profit 2

NET INCOME GROSS PROFIT OPERATING EXPENSES $28700 - $14760 INET INCOME - $ 13940

PROFIT MARGIN or net profit margin = Net profit Net sales X100 = $ 13940 too $82000 Gross- profit rate x 100 Gross Profit Net sales $28700 x 100 3544 $ 82000

SECOND COMPANY

METLOCK IN Sale Revenue = ? Net sales $ 104,000 sales return= $ 4,800 Net sales sale revenue sales return loyooo sales Revenue - 4800 lo4000+ 4800 sales Revenue sales Revenue = $ 108,800

cogs Gross profit = $38, 480 Net sale $ 104,000 gross profit Net sales cogs 38 480 104000 - cogs (cogs) 38480 - 10 tooo - 765520) 7 (cogs) cogs $ 65,520

PROFIT MARGIN = Net Profit margin= Net pusfit x100= $ 19760 *100 19te Net sales $ 10yood Gross profit Crate) = Gross profit 100 Net sales = 38480 104000 Gross profit (rate) = 37:4