Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marigold Inc. and Martinez Corporation are Canadian fertilizer companies. The following information has been taken from their financial statements for the fiscal years ended December

Marigold Inc. and Martinez Corporation are Canadian fertilizer companies. The following information has been taken from their financial statements for the fiscal years ended December 31. All figures are in millions of dollars.

MARTINEZ 2021 2020 2019
Net sales $8,985.1 $4,810.8 $3,706.0
Gross profit 4,999.6 1,865.6 930.7
Profit 3,359.8 1,110.4 688.9

MARIGOLD 2021 2020 2019
Net sales $9,297 $5,239 $4,139
Gross profit 3,303 1,584 982
Profit 1,197 426 36

Calculate both companies gross profit margin and profit margin for the years 2019 through 2021. (Round answers to 1 decimal place, e.g.52.7%.)

MARTINEZ 2021 2020 2019
Gross profit margin % % %
Profit margin % % %

MARIGOLD 2021 2020 2019
Gross profit margin % % %
Profit margin % % %

eTextbook and Media

Determine which company had the best performance for profitability in each year.

2021 2020 2019
Gross profit margin MartinezMarigold MartinezMarigold MarigoldMartinez
Profit margin MarigoldMartinez MarigoldMartinez MarigoldMartinez

eTextbook and Media

Using horizontal analysis, calculate the percentage change between the following years: 2019 and 2020; 2020 and 2021 for both companies. (Round answers to 1 decimal place, e.g.52.7%.)

MARTINEZ 2021 2020
Net sales % %
Gross profit % %
Profit % %

MARIGOLD 2021 2020
Net sales % %
Gross profit % %
Profit % %

eTextbook and Media

Using the information in the horizontal analysis, identify the company that had the most improvement in net sales, gross profit margin and profit margin in 2020 and 2021.

2021 2020
Net sales MarigoldMartinez MartinezMarigold
Gross profit MartinezMarigold MarigoldMartinez
Profit margin MartinezMarigold MartinezMarigold

eTextbook and Media

Save for Later

Attempts: 0 of 3 used

Submit Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Accounting For Business

Authors: Bob Ryan

1st Edition

9781861529930

More Books

Students also viewed these Accounting questions

Question

Dont off er e-mail communication if you arent going to respond.

Answered: 1 week ago