Answer full question. The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company:| | Atlanta* | Boston* ||-----------------------------|----------|----------|| Net sales | $34,800 | $87,600 || Cost of goods sold | (17,610) | (62,540) || Gross margin | 17,190 | 25,060 || Less: Operating exp. | | || Selling and admin. exp. | (11,260) | (17,570) || Net income | $5,930 | $7,490 |*All figures are reported in thousands of dollars.**Required:**1. **Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston.** (Round your answers to the nearest whole number.)2. **Ascertain which of the company is a high-end retailer based on ratios computed.**3. **If Atlanta and Boston have equity of $17,200 and $21,400, respectively, which company is in the more profitable business?**Complete this question by entering your answers in the tabs below.*(Instructions for students are often given in simpler and directive language to ensure clarity. The detailed breakdown of financial figures helps students understand the financial performance and comparisons of different companies based on their annual reports.)* ### Gross Margin Percentages and Return-on-Sales Ratios Analysis---#### Requirements:**Req A1 | Req A2 | Req B**#### Objective:Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston.---#### Table for Computation:| | **Atlanta** | **Boston** ||-------------------|-------------|------------|| **Gross margin percentages** | % | % || **Return-on-sales ratios** | % | % |---*Instructions:*1. Fill in the gross margin percentages for Atlanta and Boston in the respective columns.2. Calculate and enter the return-on-sales ratios for both cities.To proceed to the next part, click on the "Req A2" button.---This exercise requires you to analyze and compare the financial metrics of two regions. The gross margin percentage is a key indicator of a company's financial health and efficiency in managing its production costs relative to its revenues. The return-on-sales ratio is a profitability metric that evaluates how efficiently a company is generating profits from its sales.

Gross margin percentages determine the amount of profit that was made before deducting any selling,…

$ 34,800 (17,610) 17,190 $ 87,600 (62,540) 25,060 Net, sales Cost of goods sold Gross margin Less: Operating exp. Selling and admin. exp. Net income (11,260) (17,570) $ 5,930 $ 7,490 "All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.)

$ 34,800 (17,610) 17,190 $ 87,600 (62,540) 25,060 Net, sales Cost of goods sold Gross margin Less: Operating exp. Selling and admin. exp. Net income (11,260) (17,570) $ 5,930 $ 7,490 "All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.)

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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