Question: 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

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

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

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a 1 Gross profit percentage 2014 33 610000 408000 610000 2015 34 750000 495000 750000 2 Inventory tu... View full answer

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