The following data have been extracted from the income statement of Chang Furniture Store. Required (a) Calculate

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The following data have been extracted from the income statement of Chang Furniture Store. image text in transcribed

Required

(a) Calculate the gross profit ratio, profit margin, and expenses to sales ratio for the years 2025 and 2026.

(b) Assuming that the inventory at the beginning of 2025 is $63 300, calculate the inventory turn-over for 2025 and 2026.

(c) Advise management on any trends in these ratios, and any actions you consider necessary.

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Accounting

ISBN: 9780730382737

11th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie

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Question Posted: Apr 13, 2024 11:00 PM

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The following data have been extracted from the income statement of Chang Furniture Store. Required (a) Calculate

Question:

Net sales Cost of sales Profit Inventory (ending) 2026 2025 $ 545 600 332 130 $ 601 950 356 740 102 350 145 3201 74 760 79 200

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Accounting

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