Two companies have the financial information shown below.Requirements: Calculate the Gross Margin Percentage for each company. Calculate the Net Income Percentage for each company. From these ratios, what type of business do you think Yuri and Zuri might be? YuriZuri Net Sales 450,000 785,000 Cost of Goods Sold 261,000 698,000 Operating Expenses 67,500 45,200

Gross margin = sales - cost of goods sold Net income = Gross margin - operating expenses

Answered: Two companies have the financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Two companies have the financial information shown below.

Requirements:

Calculate the Gross Margin Percentage for each company.
Calculate the Net Income Percentage for each company.
From these ratios, what type of business do you think Yuri and Zuri might be?

	Yuri	Zuri
Net Sales	450,000	785,000
Cost of Goods Sold	261,000	698,000
Operating Expenses	67,500	45,200

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