101) Calculate gross margin percentage for the following independent situations.
a.Net sales$500,000
Purchases during the year340,700
Ending inventory35,000
Beginning inventory28,000
b.Net sales$650,000
Beginning inventory37,500
Ending inventory42,000
Purchases during the year270,000
c.Net sales$880,000
Purchases during the year420,000
Beginning inventory60,000
Ending inventory52,500
d.Net sales$232,000
Ending inventory25,000
Purchases during the year127,000
Beginning inventory30,000
102) State some methods retailers might use to increase the gross margin on sales.
103) Discuss methods companies could use to increase the rate of inventory turnover.
104) The following data are available for Big Box Corporation:
Beginning inventory$12,500
Purchases returns and allowances800
Purchases45,000
Sales85,400
Purchases discounts1,200
Sales returns2,000
Sales discounts1,300
Operating expenses31,700
Ending inventory15,000
Compute:
a. Net purchases
b. Net sales
c. Cost of goods sold
d. Gross margin
e. Gross margin rate and allowances
f. Net income
105) Victory Stables had sales and cost of sales of $600,000 and $450,000 respectively in 2011. The company had shareholders equity of $750,000 and its assets were $1,125,000. Calculate the company's gross margin and gross profit percentage for 2011.