Ratios for a Retail Store
a. Compute the following for both years:
1. Gross profit percentage.
2. Inventory turnover.
3. Accounts receivable turnover.
b. Comment on favorable and unfavorable trends?

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2015 2014 Sales (all on account) Average inventory during the year..... . . . . . . . .__ _ . . . . .. . . . .. . . . Average receivables during the year .. . . . . . .. . . 495,000 408,000 110,000 150,000 102,000 100,000