Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices to meet the

Question:

Dollar General operates 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 midwestern states. For the year ended January 31, 2014, the company reported average inventories of $ 2,475 (in millions) and an inventory turnover of 4.89. Average total fixed assets were $ 2,080 (million) and the fixed ratio was 8.14.
Required:
1. Calculate Dollar General’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?
2. Is this an improvement from the gross profit percentage of 31.7 percent earned during the previous year?
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...