The following information is available for MVF Company (dollar amounts are in millions): a. Calculate the following

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The following information is available for MVF Company (dollar amounts are in millions):

a. Calculate the following ratios for each year:
• Gross profit percentage.
• Inventory turnover.
• Cost of materials purchased to cost of finished goods produced.
b. Analyze the results obtained in 3.a. above:
• Describe the change in each ratio you observe in 2016.
• Discuss at least two possible causes of each change observed.

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Internal Auditing Assurance & Advisory Services

ISBN: 9780894139871

4th Edition

Authors: Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Cris Riddle, Mark Salamasick, Paul J. Sobel

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Question Posted: Aug 13, 2023 12:22 AM

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The following information is available for MVF Company (dollar amounts are in millions): a. Calculate the following

Question:

Net sales Cost of goods sold Beginning finished goods inventory Ending finished goods inventory Materials purchased 2016 $23.2 17.1 2.3 2.9 10.6 2015 $21.7 16.8 2.1 2.3 8.8 2014 $19.6 15.2 1.9 2.1 7.5 2013 $17.4 13.5 1.5 1.9 7.1

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a Calculating Ratios Gross Profit Percentage Gross Profit Percentage Net Sales Cost of Goods Sold Net Sales Inventory Turnover Inventory Turnover Cost ...View the full answer

Internal Auditing Assurance & Advisory Services

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