Owen Wise, Inc. reported the following in its 2022 and 2021 income statements. Determine the companys gross

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Owen Wise, Inc. reported the following in its 2022 and 2021 income statements.

2022 2021 Net sales Cost of goods sold Operating expenses Income tax expense Net income $120,000 $150,000 32,000 16,000

Determine the company’s gross profit rate and profit margin for both years. Discuss the cause for changes in the ratios.

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1119493631

9th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Jul 10, 2019 08:22 AM

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Owen Wise, Inc. reported the following in its 2022 and 2021 income statements. Determine the companys gross

Question:

2022 2021 Net sales Cost of goods sold Operating expenses Income tax expense Net income $120,000 $150,000 32,000 16,000 18,000 10,000 $ 22,000 $ 10,000

Step by Step Answer:

The companys gross profit rate remained constant however its profit mar...View the full answer

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