167.Discuss the following statement: “Operating cycles for all merchandising businesses are the same, with similar profit margins.” Include an example(s) to illustrate your explanation. ...

167.Discuss the following statement:

“Operating cycles for all merchandising businesses are the same, with similar profit margins.”

Include an example(s) to illustrate your explanation.

168.Describe the major differences in preparing the financial statements for a service business and a merchandisingbusiness.

Service Business
Merchandising Business

Income Statement:Income Statement:

Balance Sheet:Balance Sheet:

169.Complete the following data taken from the condensed income statements for merchandising Companies A, B, andC.

Company ACompany BCompany C

Net income$315$ ?$215

Sales?865560

Gross profit430?325

Operating expenses?125?

Cost of merchandise sold545320?