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Determine the company's gross profit rate and profit margin for both years.

Determine the company's gross profit rate and profit margin for both years.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom Company reported the following in its 2022 and 2021 income statements. Net sales Cost of goods sold Operating expenses Income tax expense Net income 2022 2021 $162,000 $136,000 97,200 81,600 29,160 20,400 20,000 12,000 $ 15,640 $ 22,000 Determine the company's gross profit rate and profit margin for both years. (Round answers to 1 decimal place, e.g. 52.7%.) Gross profit rate Profit margin 2022 eTextbook and Media % % 2021 % %
Transcribed Image Text:Blossom Company reported the following in its 2022 and 2021 income statements. Net sales Cost of goods sold Operating expenses Income tax expense Net income 2022 2021 $162,000 $136,000 97,200 81,600 29,160 20,400 20,000 12,000 $ 15,640 $ 22,000 Determine the company's gross profit rate and profit margin for both years. (Round answers to 1 decimal place, e.g. 52.7%.) Gross profit rate Profit margin 2022 eTextbook and Media % % 2021 % %
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