Solved: Based on the percentages computed in requirements a and b, Accounting Basics

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Based on the percentages computed in requirements a and b

The following data were taken from California Pizza Kitchen's (CPK) 2010 annual report. All dollar amounts are in millions.

38_264-B-A-M-B (1314).png

Required:

a. Compute CPK's gross margin percentage for 2010 and 2009.

b. Compute CPK's return on sales percentage for 2010 and 2009.

c. Based on the percentages computed in Requirements a and b, did CPK's performance get better or worse from 2009 to 2010?

d. Compare CPK's gross margin percentages and return on sales percentages to those of the other real world companies discussed in this chapter and discuss whether or not it appears to have better than average financial performance ornot.

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Accounting Basics: Based on the percentages computed in requirements a and b

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