Homework SourseSunland Company Blossom Company Sales Revenue 97400 Sales r
Sunland Company
Blossom Company
Sales Revenue
$97,400
??
Sales returns and allowances
??
$6,000
Net sales
81,600
129,000
Cost of goods sold
54,000
??
Gross Profit
??
48,000
Operating expenses
14,660
??
Net Income
??
16,000
Financial informantion for two companies presented below: Fill in the missing amounts.
Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g.15.5%)
Sunland Company
Blossom Company
Profit Margin
?? %
?? %
Gross profit rate
?? %
?? %
| Sunland Company | Blossom Company | |
| Sales Revenue | $97,400 | ?? |
| Sales returns and allowances | ?? | $6,000 |
| Net sales | 81,600 | 129,000 |
| Cost of goods sold | 54,000 | ?? |
| Gross Profit | ?? | 48,000 |
| Operating expenses | 14,660 | ?? |
| Net Income | ?? | 16,000 |
Solution
Workings:
| Sunland Company | Blossom Company | |
| Profit Margin (1) | 15.86% | 12.40% |
| Gross Profit Rate (2) | 33.82% | 37.21% |
| (1) Profit margin = Net Income / Net Sales | ||
| (2) Gross profit rate = Gross Profit / Net Sales |
