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below are income statements of two companies jewelry company D Question 16 Below are income statements of two companies: Jewellery Company (that sells jewelry) and

below are income statements of two companies jewelry company
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D Question 16 Below are income statements of two companies: Jewellery Company (that sells jewelry) and Grocery Store Company (which is a grocery store chain). Jewellery Company Grocery Store Company Revenue $5,000 Revenue $40,000 Cost of Goods Sold $800 Cost of Goods Sold $32,000 Gross Profit $4,200 Gross Profit $8,000 Operating Expenses $500 Operating Expenses $4,000 Operating Profit $3,700 Operating Profit $4,000 Interest Expense $185 Interest Expense $200 Earnings Before Taxes $3,515 Earnings Before Taxes $3,800 Tax Expense $1,750 Tax Expense $1,900 Net Income $1,765 Net Income $1,900 Based on table below that shows the gross profit margin, operating profit margin and net profit margin for both companies, can you make a recommendation wh company is a better investment? Jewellery Grocery Store 0.84 0.2 Gross profit margin 0.74 0.1 Operating profit margin Net profit margin 0.353 0.0475 HIM

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