Concept introduction:
Common-size percent:
Common-size percent is a tool of financial statement analysis. This tells about the percent of each item in compare to total value. In other words we can say that with the help of common-size percent, management can know the position of each item of
Gross margin ratio:
Gross margin ratio is a profitability ratio which show relationship between gross margin and sales. In other words we can say that gross margin ratio shows how much percentage of sales is in excess of cost of sales.
Requirement 1:
Common-size percents of Apple and Google companies.
Concept introduction:
Common-size percent:
Common-size percent is a tool of financial statement analysis. This tells about the percent of each item in compare to total value. In other words we can say that with the help of common-size percent, management can know the position of each item of balance sheet & income statement.
Gross margin ratio:
Gross margin ratio is a profitability ratio which show relationship between gross margin and sales. In other words we can say that gross margin ratio shows how much percentage of sales is in excess of cost of sales.
Requirement 2:
To explain:
Would
Concept introduction:
Common-size percent:
Common-size percent is a tool of financial statement analysis. This tells about the percent of each item in compare to total value. In other words we can say that with the help of common-size percent, management can know the position of each item of balance sheet & income statement.
Gross margin ratio:
Gross margin ratio is a profitability ratio which show relationship between gross margin and sales. In other words we can say that gross margin ratio shows how much percentage of sales is in excess of cost of sales.
Requirement 3:
Which compny has a higher gross margin ratio on sales?
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Managerial Accounting
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- Bb.40.arrow_forwardplease help mearrow_forwardRequired: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 5. Was financial leverage positive or negative for the year? 1. Gross margin percentage % 2. Net profit margin percentage % 3. Return on total assets % 4. Return on equity % 5. Financial Leveragearrow_forward
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