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Required information [The following information applies to the questions displayed below.] Below are amounts found in...

Required information

[The following information applies to the questions displayed below.]

Below are amounts found in the income statements of three companies.

Company Sales
Revenue
Cost of
Goods Sold
Operating
Expenses
Non-operating
Expenses
Income Tax
Expense
Henry $ 30,000 $ 6,000 $ 4,900 $ 1,900 $ 1,900
Grace 33,000 23,760 13,000 6,900 0
James 38,000 24,320 2,900 0 2,900

2-a. For each company, calculate the gross profit ratio.

Gross Profit Ratio
Henry =
Grace =   
James =

2-b. Which company has the most favorable ratio?

  • Henry

  • Grace

  • James

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