The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company: Atlanta* Boston* Net sales $ 210,000 $ 230,000 Cost of goods sold (126,000 ) (179,400 ) Gross margin 84,000 50,600 Less: Operating exp. Selling and admin. exp. (67,200 ) (32,200 ) Net income $ 16,800 $ 18,400 *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. a-2. One of the companies is a high-end retailer that operates in exclusive shopping malls. The other operates discount stores located in low-cost, standalone buildings. Ascertain which of the company is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $168,000 and $122,700, respectively, which company is in the more profitable business?