Refer to the Pelosi Communications situation in Starters 5-11 and 5-12. Compute the gross margin percentage and rate of inventory turnover for 2014. One year earlier, at December 31, 2013, Pelosi's inventory balance was $600.
Data from starter 5-11
Accounts payable......................................... $ 8,000
Accounts receivable...................................... 5,600
Accrued liabilities......................................... 3,200
Cash ............................................................... 7,600
Cost of goods sold ........................................40,000
Equipment, net............................................ 17,400
Inventory........................................................ 800
Long-term notes payable............................. 1,800
Net sales revenue......................................... 60,000
Total operating expenses............................. 17,000
V. Pelosi, capital.......................................... 18,400