Exercise 2 - Missing amounts and profitability ratios Summary financial information for two independent companies is presented below. Kalkallo Ltd Sales 420 000 Sales returns ? Net sales 396 000 Cost of sales Gross profit 230 000 ? Expenses 105 000 Profit ? Required (a) Calculate the missing amounts. Mickleham Ltd ? 18000 510000 ? 165 000 ? 80000 (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).