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
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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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- a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place. Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Dawg Electronics Electronics Industry Company Amount Company Percent Average Sales $3,750,000 100.0 % 100.0% Cost of goods sold (2,062,500) 550.0 % (61.0)% Gross profit $1,687,500 45.0 % 39.0% Selling expenses $(1,125,000) 0.3 % (23.0)% Administrative expenses (262,500) 0.7 % (10.0)% Total operating expenses $(1,387,500) 37.0 % (33.0)% Operating income $300,000 8.0 % 6.0% Other revenue and expense: Other revenue 15,000 0.4 % 3.0% Other expense (3,750) 0.1 % (1.0)% Income before income tax $311,250 8.3 % 8.0% Income tax expense (93,750) 25 % (2.5)% Net income $217,500 5.8 % 5.5%Based on the information below, calculate the profit margin for Starbuck’s and Dunkin and choose the company that is strongest. Starbuck's Dunkin Brands Revenues 6,310 Revenues 350 Net Income 852 Net Income 66 EBITDA 1,510 EBITDA 122Suppose the net sales is 1,60,000 for a firm and cost of goods sold is 40,000. Calculate gross profit ratio,
- Alex is currently considering to invest his money in one of the companies betweenCompany A and Company B. The summarized final accounts of the companies for theirlast completed financial year are as follows: (refer to the images) Required:a. Calculate the following ratios for Company A and Company B. State clearly theformulae used for each ratio:i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)v. Payables Payment Period (days)vi. Current Ratiovii. Quick Ratiob. Comment on each of the ratios calculated in part (a) above.What is total net sales for this company? What is total gross profit for this company? What is total operating expenses for this company? What is net income for this company? What is the company's gross profit ratio, also called gross profit margin ratio? Just enter the digits without decimals or punctuation.Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size. Average total assets Net sales Net income BioBeans $227,500 115,000 11,375 Greenkale $174,000 69,600 2,800 Required: 1a. Compute the profit margin for both companies. 1b. Compute the return on total assets for both companies. 2. Based on analysis of these two measures, which company is the preferred investment?
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