The following income statements were drawn from the annual reports of the Denver Company and the Reno Company:

	Denver*	Reno*
Net sales	$	35,300		$	86,000
Cost of goods sold		(16,740	)		(63,080	)
Gross margin		18,560			22,920
Less: Operating exp.
Selling and admin. exp.		(12,440	)		(15,042	)
Net income	$	6,120		$	7,878

*All figures are reported in thousands of dollars.

Required

a-1.	Compute the gross margin percentages and return-on-sales ratios of Denver and Reno.(Round your answers to the nearest whole number.)

a-2.	Ascertain which of the company is a high-end retailer based on ratios computed.
	Reno Denver

b.	If Denver and Reno have equity of $15,400 and $20,200, respectively, which company is in the more profitable business?
	Reno Denver