nancial information for two companies are presented below.  Fill in the missing amounts.  Sheffield Corp. Tamarisk, Inc.Sales revenue $100,000 $enter a dollar amount Sales returns and allowances enter a dollar amount 6,000Net sales 94,000 116,000Cost of goods sold 64,860 enter a dollar amountGross profit enter a subtotal of the two previous amounts 38,280Operating expenses 16,920 enter a dollar amountNet income enter a total net income 17,400 eTextbook and Media    Calculate the profit margin and the gross profit rate for each company. (Round answers to 0 decimal places, e.g. 15%.)  Sheffield Corp. Tamarisk, Inc.Profit margin enter percentages rounded to 1 decimal place% enter percentages rounded to 1 decimal place%Gross profit rate enter percentages rounded to 1 decimal place% enter percentages rounded to 1 decimal place%

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Asked Nov 21, 2019
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nancial information for two companies are presented below.
 
 
Fill in the missing amounts.

   
Sheffield Corp.
 
Tamarisk, Inc.
Sales revenue
  $100,000   $enter a dollar amount 
Sales returns and allowances
  enter a dollar amount   6,000
Net sales
  94,000   116,000
Cost of goods sold
  64,860   enter a dollar amount
Gross profit
  enter a subtotal of the two previous amounts   38,280
Operating expenses
  16,920   enter a dollar amount
Net income
  enter a total net income   17,400
 

eTextbook and Media

 
 
 
 
Calculate the profit margin and the gross profit rate for each company. (Round answers to 0 decimal places, e.g. 15%.)

 
 
Sheffield Corp.
 
Tamarisk, Inc.
Profit margin
  enter percentages rounded to 1 decimal place %   enter percentages rounded to 1 decimal place %
Gross profit rate
  enter percentages rounded to 1 decimal place %   enter percentages rounded to 1 decimal place %
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Expert Answer

Step 1

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

Net profit margin ratio calculates the amount of net income of a company that is generated as a percentage of sales revenue. It is financial metric used to calculate the profitability of a business.

Step 2

To calculate missing amounts:

S.C
$100,000
S6,000 (100,000- $94,000)
S94,000
S64,860
$29,140 (94,000- $64,860)
s16,920
$12,220 (29,140- $16,920)
T.I
$122,000 ($116,000 + $6,000)
$6,000
s116,000
$77,720 ($116,000 $38,280)
S38,280
$20,880 ($38,280 -$17,400)
s17,400
Sales revenue
Sales return and allowances
Net sales
Cost of goods sold
Gross profit
Operating expenses
Net income
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S.C $100,000 S6,000 (100,000- $94,000) S94,000 S64,860 $29,140 (94,000- $64,860) s16,920 $12,220 (29,140- $16,920) T.I $122,000 ($116,000 + $6,000) $6,000 s116,000 $77,720 ($116,000 $38,280) S38,280 $20,880 ($38,280 -$17,400) s17,400 Sales revenue Sales return and allowances Net sales Cost of goods sold Gross profit Operating expenses Net income

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Step 3

To calculate Gross p...

Net sales
COGS or (Gross profit)
x 100
Gross profit percentage=
Net sales
S.C
$29,140
$94,000
31%
T.I
$38,280
$116,000
Gross profit
Net sales
Gross profit percentage
33%
help_outline

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Net sales COGS or (Gross profit) x 100 Gross profit percentage= Net sales S.C $29,140 $94,000 31% T.I $38,280 $116,000 Gross profit Net sales Gross profit percentage 33%

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