The following information was drawn from the annual reports of two companies. Company A Company B Sales revenue $1,000 $2,000 Cost of goods sold $(600) $(1100) Gross margin $400 $900 Operating expenses $(220) $(700) Operating income $180 $200 Gain on sale of equipment $150 $0 Net Income $330 $200 Based on this information, Company B's return on sales is: a. 55%. b. 45%. c. 35%. d. 10%.

The following information was drawn from the annual reports of two companies. Company A Company B Sales revenue $1,000 $2,000 Cost of goods sold $(600) $(1100) Gross margin $400 $900 Operating expenses $(220) $(700) Operating income $180 $200 Gain on sale of equipment $150 $0 Net Income $330 $200 Based on this information, Company B's return on sales is: a. 55%. b. 45%. c. 35%. d. 10%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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