22) When analyzing the operating performance of a merchandise firm, inventory turnover and the gross profit ratio are usually calculated. What do the inventory turnover ratio and gross profit ratio indicate?
23) Use the following data to answer the questions below:
Nov. 30, 2011
Nov. 30, 2012
Nov. 30, 2013
Sales
$3,500,000
$4,000,000
$4,400,000
COGS
$2,100,000
$2,400,000
$2,685,000
Inventory
$650,000
$700,000
$600,000
Required:
1. Calculate the values required in the chart below:
For the year ended
Gross profit
Gross profit ratio
Inventory turnover ratio
2. Interpret the meaning of each of theRATIOSyou have just calculated.
24) Use the following data to answer the questions below:
Jan. 31, 2011
Jan. 31, 2012
Jan. 31, 2013
$500,000
$400,000
$380,000
$200,000
$165,000
$144,400
$12,000
$14,000
$10,500
1. Calculate the values required in the chart below
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