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Sunland Company
Blossom Company
Sales Revenue
$97,400
??
Sales returns and allowances
??
$6,000
Net sales
81,600
129,000
Cost of goods sold
54,000
??
Gross Profit
??
48,000
Operating expenses
14,660
??
Net Income
??
16,000
Financial informantion for two companies presented below: Fill in the missing amounts.
Calculate the profit margin and the gross profit rate for each company. (Round answers to 1
decimal place, e.g.15.5%)
Sunland Company
Blossom Company
Profit Margin
?? %
?? %
Gross profit rate
?? %
?? %
Sunland Company
Blossom Company
Sales Revenue
$97,400
??
Sales returns and allowances
??
$6,000
Net sales
81,600
129,000
Cost of goods sold
54,000
??
Gross Profit
??
48,000
Operating expenses
14,660
??
Net Income
??
16,000
Solution
Workings:Sunland CompanyBlossom CompanyProfit Margin (1)15.86%12.40%Gross Profit
Rate (2)33.82%37.21%(1) Profit margin = Net Income / Net Sales(2) Gross profit rate = Gross
Profit / Net Sales

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Sunland CompanyBlossom CompanySales Revenue$97,400Sales .pdf

  • 1. Sunland Company Blossom Company Sales Revenue $97,400 ?? Sales returns and allowances ?? $6,000 Net sales 81,600 129,000 Cost of goods sold 54,000 ?? Gross Profit ?? 48,000 Operating expenses 14,660 ?? Net Income ?? 16,000 Financial informantion for two companies presented below: Fill in the missing amounts. Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g.15.5%) Sunland Company Blossom Company Profit Margin ?? % ?? % Gross profit rate ?? % ?? % Sunland Company
  • 2. Blossom Company Sales Revenue $97,400 ?? Sales returns and allowances ?? $6,000 Net sales 81,600 129,000 Cost of goods sold 54,000 ?? Gross Profit ?? 48,000 Operating expenses 14,660 ?? Net Income ?? 16,000 Solution Workings:Sunland CompanyBlossom CompanyProfit Margin (1)15.86%12.40%Gross Profit Rate (2)33.82%37.21%(1) Profit margin = Net Income / Net Sales(2) Gross profit rate = Gross Profit / Net Sales