Sheridan Company Crane Company Sales revenue $90,600 2$ Sales returns and allowances $ 5,000 Net sales 82,200 111,000 Cost of goods sold 54,400 Gross profit $ 49,000 Operating expenses 14,360 Net income 2$ 14,400 List of Accounts Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 15.5%.) Sheridan Company Crane Company Profit margin Gross profit rate %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Company Financial Overview**

This educational resource provides a detailed financial analysis of two companies: Sheridan Company and Crane Company. Below is the breakdown of their financial statements, including sales, expenses, and net income. Additionally, the task is to calculate the profit margin and gross profit rate for each company.

### Financial Statements

#### Sheridan Company
- **Sales Revenue**: $90,600
- **Sales Returns and Allowances**: (not provided)
- **Net Sales**: $82,200
- **Cost of Goods Sold (COGS)**: $54,400
- **Gross Profit**: (to be calculated)
- **Operating Expenses**: $14,360
- **Net Income**: (to be calculated)

#### Crane Company
- **Sales Revenue**: (not provided)
- **Sales Returns and Allowances**: $5,000
- **Net Sales**: $111,000
- **Cost of Goods Sold (COGS)**: (not provided)
- **Gross Profit**: $49,000
- **Operating Expenses**: (not provided)
- **Net Income**: $14,400

### Calculations Needed

- **Profit Margin** 
- **Gross Profit Rate**

(Note: Ensure to round your answers to one decimal place, e.g., 15.5%.)

These calculations will provide insights into the profitability and efficiency of each company's operations.
Transcribed Image Text:**Company Financial Overview** This educational resource provides a detailed financial analysis of two companies: Sheridan Company and Crane Company. Below is the breakdown of their financial statements, including sales, expenses, and net income. Additionally, the task is to calculate the profit margin and gross profit rate for each company. ### Financial Statements #### Sheridan Company - **Sales Revenue**: $90,600 - **Sales Returns and Allowances**: (not provided) - **Net Sales**: $82,200 - **Cost of Goods Sold (COGS)**: $54,400 - **Gross Profit**: (to be calculated) - **Operating Expenses**: $14,360 - **Net Income**: (to be calculated) #### Crane Company - **Sales Revenue**: (not provided) - **Sales Returns and Allowances**: $5,000 - **Net Sales**: $111,000 - **Cost of Goods Sold (COGS)**: (not provided) - **Gross Profit**: $49,000 - **Operating Expenses**: (not provided) - **Net Income**: $14,400 ### Calculations Needed - **Profit Margin** - **Gross Profit Rate** (Note: Ensure to round your answers to one decimal place, e.g., 15.5%.) These calculations will provide insights into the profitability and efficiency of each company's operations.
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