Acc280 Financial Accounting: E5-7 Financial information is presented (Iwig and Pratt Company)
Acc280 Financial Accounting E5-7 Financial information is presented here for two companies. Iwig Company Pratt Company Sales 90,000 Sales returns 5,000 Net sales 84,000 100,000 Cost of goods sold 56,700 Gross profit 40,000 Operating expenses 14,580 Net income 18,000
Instructions a. Fill in the missing amounts. Show all computations. b. Calculate the profit margin ratio and the gross profit rate for each company. c. Discuss your findings in part (b).