quired Prepare journal entries for each of the transactions for the Cushing Distributing Company. -54. Profitability Analysis Kolby Enterprises reports the following information on its income statement: L Net sales. Cost of goods sold. Selling expenses $250,000 150,000 50,000 Administrative expenses.. Other income Other expense $10,000 15,000 10,000 Required Calculate Kolby's gross profit percentage and return on sales ratio. Explain what each ratio tells us about Kolby's performance. Kolby is planning to add a new product and expects net sales to be $45,000 and cost of goods to be $38,000. No other income or expenses are expected to change. How will this affect Kolby's gross profit percentage and return on sales ratio? What do you advise regarding the new product offering? Journal Entries for Merchandise Transactions on Seller's and Buyer's Books_Periodic System