Save-the-Earth Co. reports the following income statement accounts for the year ended December 31.

	Carrier			Lennox			Trane			York
Sales	$	165,000		$	850,000		$	53,000		$	272,000
Sales discounts		4,000			19,500			600			4,900
Sales returns and allowances		17,000			6,000			5,400			1,800
Cost of goods sold		95,760			507,892			36,190			129,997

(a) Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies. (b) Which company has the better gross margin ratio?

Prepare a multiple-step income statement for the year ended December 31.