Intro to Financial ACC -Canadian EDition

E 5.9 Determine missing amounts and calculate profitability ratios.

Intro to Financial ACC -Canadian EDition Determine missing amounts and calculate profitability ratios. Income statement information is presented here for two companies: Young Ltd. Rioux Ltee Sales $99.000 $ [6] Sales returns and allowances [1] 5.000 Net sales 89.000 100,000 Cost of goods sold 58,750 [7] Gross profit [2] 40,000 Operating expenses 19.500 [8] Profit from operations [3] 18,000 Other revenues 750 0 Other expenses 0 2,000 Profit before income tax [4] [9] Income tax expense 2.300 [10] Profit [5] 12,800 Instructions Calculate the missing amounts for items [1] to [10]. Calculate the aross profit m aroin and profit marsin for each company