TASK THREЕ:Income Statement for the year ended 31 December 2020EdwardFrankieCompanyCompany$Sales100,00080,000Less:Cost of goods sold60,00050,000Gross Profit40,00030,000Less:Expenses36.00018,000Net Profit4.00012,0001. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each ofthe company respectively.2. Comment the profitability of the two companies.

Gross profit ratio = Gross profit/ Sales Net profit ratio = Net profit/ Sales Expense to sales ratio…

TASK THREE: Income Statement for the year ended 31 December 2020 Edward Frankie Company Company Sales 100,000 80,000 Less: Cost of goods sold 60,000 50,000 30,000 Gross Profit 40,000 Less: Expenses 36,000 18,000 12,000 Net Profit 4,000 1. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each of the company respectively. 2. Comment the profitability of the two companies.

TASK THREE: Income Statement for the year ended 31 December 2020 Edward Frankie Company Company Sales 100,000 80,000 Less: Cost of goods sold 60,000 50,000 30,000 Gross Profit 40,000 Less: Expenses 36,000 18,000 12,000 Net Profit 4,000 1. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each of the company respectively. 2. Comment the profitability of the two companies.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.4MBA

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