Question: Provided below is partial financial information for two pharmacies for the year 20X1. Davis Regional Pharmacy $48,000 $52,000 $62,500 $55,000 Inventory as of January

Provided below is partial financial information for two pharmacies for the year

Provided below is partial financial information for two pharmacies for the year 20X1. Davis Regional Pharmacy $48,000 $52,000 $62,500 $55,000 Inventory as of January 1, 20X1 Inventory as of December 31, 20X1 Sales revenue Cost of goods sold For each Pharmacy, calculate the Inventory Turnover Ratio and the Gross Margin Percentage. Input your responses in the table below (round to the nearest 2 decimal places, e.g. $1.23). Then, answer the questions below the table. Davis Regional Pharmacy Inventory Turnover Ratio Gross Margin Percentage 1.10 Kelley Community Pharmacy $46,000 $44,000 $56,250 $54,000 Kelley Community Pharmacy (a) Complete the following sentence: An inventory turnover ratio of 2.0 indicates that... (d) Which pharmacy, Davis or Kelley, reported greater profitability? (b) Which pharmacy, Davis or Kelley, turned over its inventory faster? Kelley (c) Complete the following sentence: A gross margin percentage of 20% indicates that... 1.20 176

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