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The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company: Atlanta $ 36,900 (16,340) 20,560 Net sales
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company: Atlanta $ 36,900 (16,340) 20,560 Net sales Cost of goods sold Gross margin Less: Operating exp. Selling and adnin. exp. Net income Bostone $ 86,200 (63, 010) 23, 190 (11,676) $ 11,514 (11,680) $ 8,880 "All figures are reported in thousands of dollars. Required 0-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston a-2. One of the companies is a high-end retaller that operates in exclusive shopping malls. The other operates discount stores located in low-cost, standalone buildings. Identify the high-end retailer based on the ratios computed. b. If Atlanta and Boston have stockholders' equity of $16,400 and $20,200, respectively, which company is in the more profitable business? Req A1 Req A2 Req B Compute the gross margin percentages and return-on-sales ra whole percentage.) Atlanta % Gross margin percentages Return-on-sales ratios Boston % % % Req A1
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