Compute the gross profit ratio for each of the two years reported.

2. Did the company outperform or underperform the industry average gross profit ratio of 30% in the current year?

3. Did the gross profit ratio improve or decline in the current year?

 

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Sales Cost of goods sold $ 250,000 170,000 Current Year $ 220,000 165,000 Prior Year Sales Cost of goods sold $ 250,000 170,000 Current Year $ 220,000 165,000 Prior Year

Answer rating: 100% (QA)

Gross Profit Ratio Current Year Gross Profit Sales Cost of Goods Sold Gr... View the full answer