Explain whether the following situations, taken independently, would be favorable or unfavorable (a) Increase in gross profit percentage, (b) Decrease in inventory turnover ratio , (c) Increase in earnings per share, (d) Decrease in days to collect, (e) Increase in net profit margin, and (f)Decreas...

The following explanations are based on typical circumstances a An increase in gross p ...

Explain whether the following situations, taken independently, would be favorable or unfavorable: (a) Increase in gross profit

Question:

Explain whether the following situations, taken independently, would be favorable or unfavorable:
(a) Increase in gross profit percentage,
(b) Decrease in ,
(c) Increase in earnings per share,
(d) Decrease in days to collect,
(e) Increase in net profit margin, and
(f) Decrease in quick ratio.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...