Respuesta :
Answer: See explanation
Explanation:
The missing amounts are gotten below:
Sales revenue:
May company = 90,000
Reed company = 107,000
Sales returns
May company = 300
Reed company = 5,000
Net sales
May company = 87,000
Reed company = 102,000
Cost of goods sold
May company = 56,000
Reed company = 60,500
Gross profit
May company = 31,000
Reed company = 41,500
Operating expenses
May company = 15,000
Reed company = 26,500
Net income
May company = 16,000
Reed company = 15,000
Then, the gross profit rate would be calculated as:
= Gross Profit/Net sales
For May company, this will be:
= 31,000/87,000
= 0.36
= 35.6%
For Reed company, this will be:
= 41,500/102,000
= 0.47
= 40.7%
Note that some of the formula used to solve the above question include the net sales which is the difference between the sales and sales return.
Gross profit is the difference between the net sales and the cost of the goods sold
Net income is the difference between the gross profit and the operating expenses
