The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company. Atlanta* $ 34,800 |(15,500) 19,300 Boston* $ 86,100 (62,830) 23,270 Net sales Cost of goods sold Gross margin Less: Operating expenses Selling and administrative (12,120) (14,496) expenses Net income $ 7,180 $ 8,774 *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. a-2. Ascertain which of the companies is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $15,600 and $21,400, respectively, which company is in the more profitable business? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) Atlanta Boston Gross margin percentages % % Return-on-sales ratios % < Req A1 Req A2 >
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company. Atlanta* $ 34,800 |(15,500) 19,300 Boston* $ 86,100 (62,830) 23,270 Net sales Cost of goods sold Gross margin Less: Operating expenses Selling and administrative (12,120) (14,496) expenses Net income $ 7,180 $ 8,774 *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. a-2. Ascertain which of the companies is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $15,600 and $21,400, respectively, which company is in the more profitable business? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) Atlanta Boston Gross margin percentages % % Return-on-sales ratios % < Req A1 Req A2 >
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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