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Exercise 5-08 a-b Financial information for two companies are presented below. Fill in the missing amounts. Metlock, Inc. Larkspur, Inc. Sales revenue $86,000 $enter a

Exercise 5-08 a-b

Financial information for two companies are presented below.

Fill in the missing amounts.

Metlock, Inc.

Larkspur, Inc.

Sales revenue

$86,000 $enter a dollar amount

Sales returns and allowances

enter a dollar amount

4,600

Net sales

80,000 102,000

Cost of goods sold

53,600 enter a dollar amount

Gross profit

enter a subtotal of the two previous amounts

36,720

Operating expenses

14,400 enter a dollar amount

Net income

enter a total net income

17,340
Calculate the profit margin and the gross profit rate for each company. (Round answers to 0 decimal places, e.g. 15%.)

Metlock, Inc.

Larkspur, Inc.

Profit margin

enter percentages rounded to 1 decimal place

% enter percentages rounded to 1 decimal place

%

Gross profit rate

enter percentages rounded to 1 decimal place

% enter percentages rounded to 1 decimal place

%

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