Summary financial information for two independent companies is presented below:Kalkallo

Summary financial information for two independent companies is presented below:

Kalkallo Ltd

Mickleham Ltd

Sales

Sales returns

Net sales

Cost of sales

Gross profit

Expenses

Profit

420000

?

396000

230000

?

105000

?

?

18000

510000

?

165000

?

80000

Required

A. Calculate the missing amounts.

B. Calculate the gross profit ratio, profit margin and expenses to sales ratio for each company.

C. Compare and comment on the two companies’ ratios you calculated in requirement B.

 

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