Brief Exercise 3-8 (Algo) Calculating financial ratios LO 3-8 The following income statements were drawn from the annual reports of the Fenway Company and the Wrigley Company: Fenway $631,000 (292,200) 338,800 Wrigley $ 661,000 (457,200) 203,800 Net sales Cost of goods sold Gross margin Less: Operating expense Selling and administrative expense Net income Required: a. Compute the gross margin percentage for both companies. b. Compute the return-on-sales percentage for both companies. Note: For all requirements, round answers to the nearest whole percentage. a. Gross margin percentages b. Return-on-sales percentages Fenway (189,000) (49,000) $ 149,800 $ 154,800 % % Wrigley % %

Brief Exercise 3-8 (Algo) Calculating financial ratios LO 3-8 The following income statements were drawn from the annual reports of the Fenway Company and the Wrigley Company: Required: a. Compute the gross margin percentage for both companies. b. Compute the return-on-sales percentage for both companies. Note: For all requirements, round answers to the nearest whole percentage