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

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The following data have been extracted from the income statement of Llandilo Furniture Store.

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Required

(a) Calculate the gross profit ratio, profit margin, and expenses to sales ratio for the years 2019 and 2020.

(b) Assuming that the inventory at the beginning of 2019 is $63 300, calculate the inventory turnover for 2019 and 2020.

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

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Financial Accounting

ISBN: 9780730363217

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield

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Question Posted: Mar 07, 2024 07:00 AM

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

Question:

Net sales Cost of sales Profit Inventory (ending) 2020 $545 600 332130 102 350 74760 2019 $601 950 356740 145320 79 200

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Financial Accounting

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