Financial Information Is Presented Below for Two Different Companies Instructions
Determine the Missing Amounts

question 225

Essay

Financial information is presented below for two different companies. $\begin{array}{lrr}&\text { Gower } & \text { Martini Food } \\&\text { Drugs } & \text { and Liquor }\\\text { Sales revenue } & \$ 90,000 & \$(\mathrm{e}) \\\text { Sales returns and allowances } & (\mathrm{a}) & 3,000 \\\text { Net sales } & 86,000 & 95,000 \\\text { Cost of goods sold } & 56,000 & (\mathrm{f}) \\\text { Gross profit } & (\mathrm{b}) & 36,000 \\\text { Operating expenses } & 22,000 & (\mathrm{~g}) \\\text { Income from operations } & (\mathrm{c}) & (\mathrm{h}) \\\text { Other expenses and losses } & 4,000 & 7,000 \\\text { Net income } & \text { (d) } & 11,000\end{array}$ Instructions
Determine the missing amounts.

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Definitions:

Liabilities

Financial obligations or debts owed by a person, company, or entity to others, requiring the outflow of resources to settle.

Total Rate of Return

A profitability measure that accounts for the gains or losses from investments over a specific period, including interest, dividends, and capital gain.

Current Yield

The annual income (interest or dividends) divided by the current price of the security.

Yield to Maturity

The total return anticipated on a bond if the bond is held until the end of its lifetime.