The following information is from the financial statements of Abbys International Pasta Corporation: Requirements 1. Calculate the

Question:

The following information is from the financial statements of Abbyâ€™s International Pasta Corporation:

Requirements
1. Calculate the gross profit ratio for the last two years shown.
2. Calculate the inventory turnover ratio for the last two years shown.
3. What information do these comparisonsprovide?

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,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...