The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company: Atlanta' $ 33,100 (17,810) 15,290 Boston* $ 89,800 (62,940) 26,860 Net sales Cost of goods sold Gross margin Less: Operating expense Selling and admininstrative expense Net income *All figures are reported in thousands of dollars. (11,780) $ 3,510 (22,946) $ 3,914 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. Identify the high-end retailer based on the ratios computed. b. If Atlanta and Boston have stockholders' equity of $15,800 and $20,600, respectively, which company is in the more profitable business?

The following income statements were drawn from the annual reports of the Atanta Company and the Boston Company: 'All figures are reported in thousands of dollars. Required: a-1. Compute the gross margin percentoges ond return-on-sales ratios of Ationta 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. Identify the high-end retaler based on the ratios computed. b. If Atlanta and Baston have stockholders' equity of $15,800 and $20,600, respectively, which company is in the more profitable business