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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