Nokia (www.Nokia.com), Research In Motion, and Apple are competitors in the global marketplace. Key comparative figures for each company follow.
Net Sales Cost of Sales
Nokia* 40,984 27,720
Research In Motion† $14,953 $ 8,369
Apple† $42,905 $25,683
1. Rank the three companies (highest to lowest) based on the gross margin ratio.
2. Which of the companies uses a multiple-step income statement format? (These companies’ income statements are in Appendix A.)