The following extract from the income statement was prepared for the business owned by Jenni Fares. The

Question:

The following extract from the income statement was prepared for the business owned by Jenni Fares.

Calculate the following ratios:

a. Gross profit margin

b. Mark-up

c. Rate of inventory turnover.

In each case, state the formula used.

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Accounting For Cambridge International AS And A Level

ISBN: 9780198399711

1st Edition

Authors: Jacqueline Halls Bryan, Peter Hailstone

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Question Posted: Sep 17, 2021 01:27 AM

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The following extract from the income statement was prepared for the business owned by Jenni Fares. The

Question:

Jenni Fares Income statement (extract) for the year ended 31 January 2015 $ Revenue 800 000 Opening inventory 29 000 Purchases 646 000 675 000 Closing inventory (35 000) Cost of sales (640 000) Gross profit 160 000

Step by Step Answer:

ANSWER a Gross profit margin Gross profit margin is a profitability ratio that shows the percentage ...View the full answer

Accounting For Cambridge International AS And A Level

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