The following selected data were taken from the financial statements of two grocery chains, GoodFood Corp. and

Question:

The following selected data were taken from the financial statements of two grocery chains, GoodFood Corp. and Tasty's Ltd., for 2015 (in thousands):

Tasty's Ltd. GoodFood Corp. $5,402 43 4,321 162 $12,369 Sales returns Cost of goods sold Net income 9,276 446

a. Determine the gross margins for both companies. Round the percentage to one decimal place.
b. Determine the profit margins for both companies. Round the percentage to one decimal place.
c. Interpret the ratio differences between the two companies.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...