Summary financial information for two independent companies is presented below: Kalkallo Ltd Mickleham Ltd Sales Sales returns

Question:

Summary financial information for two independent companies is presented below:

Kalkallo Ltd

Mickleham Ltd

Sales

Sales returns

Net sales

Cost of sales

Gross profit

Expenses

Profit

420000

396000

230000

105000

18000

510000

165000

80000

Required

A. Calculate the missing amounts.

B. Calculate the gross profit ratio, profit margin and expenses to sales ratio for each company.

C. Compare and comment on the two companies’ ratios you calculated in requirement B.

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Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

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Question Posted: Jun 19, 2019 10:42 AM

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Summary financial information for two independent companies is presented below: Kalkallo Ltd Mickleham Ltd Sales Sales returns

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A B Kalkallo Ltd Mickleham Ltd Sales 420 000 528 000 Sales returns 24 000 18 000 ...View the full answer

Accounting

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