RATIO ANALYSIS The following information was taken from Logsden Manufacturing’s trial balances as of December 31, 2008, and December 31, 2009.

12/31/2009 12/31/2008 Accounts receivable $ 13,000 $ 17,000 Accounts payable 22,000 15,000 CGS 140,000 119,000 Sales 274,000 239,000 Sales returns 12,000 11,000 Retained earnings 47,000 16,000 Dividends 5,000 1,000 Income from operations 25,000 16,000 Net income 21,000 18,000 Required:

Calculate the gross profit ratio and operating margin ratio for 2009.

Problem Set A