The Following Information Is Available from the Annual Reports of Flynn

The following information is available from the annual reports of Flynn Company and Tolan Inc. $\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { (Amounts in millions) }\\\begin{array}{lrr}& \text { \underline{\text{Flynn }} } & \text { \underline{\text{Tolan }} } \\ \text { Sales revenue } ............................................& \$ 32,622 & \$ 40,457 \\ \text { Cost of goods sold } ..................................... & 20,739 & 24,431 \\\text { Operating expenses } .................................... & 7,428 & 9,188 \\\text { Income before taxes } .................................... & 4,455 & 6,838 \\\text { Net income } ................................................. & 2,594 & 4,072 \\ \end{array}\end{array}$ Instructions
1. Calculate the profit margin and gross profit rate for each company.
2. What conclusion concerning the relative profitability of the two companies can be drawn from these data?