Financial Statement Information is presented her for two companies:

Sheila Company Aron Company

Sales Revenue 95,000 ?

Sales returns and allowances ? 4,000

Net Sales 84,000 100,000

Cost of goods sold 58,000 ?

Gross profit ? 40,000

Operating expenses 14,380 ?

Net Income ? 17,000

Gross profit %

Profit margin"%

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, which company is in a stronger financial position?