Financial information is presented here for two companies.

Yanik Nunez Company Company Sales revenue $90,000 ?

Sales returns and allowances ? $ 5,000 Net sales 84,000 100,000 Cost of goods sold 58,000 ?

Gross profit ? 40,000 Operating expenses 14,380 ?

Net income ? 17,000 Instructions

(a) Fill in the missing amounts. Show all computations.

(b) Calculate the profit margin and the gross profit rate for each company.

(c) Discuss your findings in part (b).

AppendixLO1