# Question: Dollar General Corporation operates approximately 9 400 general merchandise stores that

Dollar General Corporation operates approximately 9,400 general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and mid-western states. For the year ended January 28, 2011, the company reported average inventories of $1,643 (in millions) and an inventory turnover of 5.39. Average total fixed assets were $1,427 (million), and the fixed asset turnover ratio was 9.13.

Required:

1. Calculate Dollar Generalâ€™s gross profit percentage (expressed as a percentage with one decimal place). What does this imply about the amount of gross profit made from each dollar of sales?

TIP: Work backward from the fixed asset turnover and inventory turnover ratios to compute the amounts needed for the gross profit percentage.

2. Is this an improvement from the gross profit percentage of 31.3 percent earned during the previous year?

Required:

1. Calculate Dollar Generalâ€™s gross profit percentage (expressed as a percentage with one decimal place). What does this imply about the amount of gross profit made from each dollar of sales?

TIP: Work backward from the fixed asset turnover and inventory turnover ratios to compute the amounts needed for the gross profit percentage.

2. Is this an improvement from the gross profit percentage of 31.3 percent earned during the previous year?

**View Solution:**## Answer to relevant Questions

In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume that the following transactions were completed: (1) Purchased merchandise for $6,000 on account, ...Use the data given in PA13-1 for Pinnacle Plus.Required:1. Compute the gross profit percentage in 2013 and 2012. Round the percentages to one decimal place. Is the trend going in the right direction?2. Compute the net ...Use the data given in PB13-1 for Tiger Audio.Required:1. Compute the gross profit percentage in 2013 and 2012. Is the trend going in the right direction?2. Compute the net profit margin for 2013 and 2012. Is the trend going ...Speedy Company uses the double-declining-balance method to depreciate its property, plant, and equipment, and Turtle Company uses the straight-line method. The two companies are exactly alike except for the difference in ...Give two examples of an itemized cost sheet that you have received recently (e.g., a medical bill or a tuition statement would qualify as an itemized cost record).Post your question