Required information

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Below are amounts found in the income statements of threecompanies.

Company	Sales Revenue				Cost of Goods Sold				Operating Expenses				Non-operating Expenses				Income Tax Expense
Henry	$	30,000			$	6,000			$	4,900			$	1,900			$	1,900
Grace		33,000				23,760				13,000				6,900				0
James		38,000				24,320				2,900				0				2,900

2-a. For each company, calculate the grossprofit ratio.

Gross Profit Ratio
Henry			=
Grace			=
James			=

2-b. Which company has the most favorableratio?

• Henry

• Grace

• James