Question: Selected financial data for Quick Sell, Inc., a retail store, appear as follows. Year 2 Year 1 Sales (all on account) $ 756,000 $ 606,000

Selected financial data for Quick Sell, Inc., a retail store, appear as follows.

Year 2 Year 1
Sales (all on account) $ 756,000 $ 606,000
Cost of goods sold 417,000 353,000
Average inventory during the year 156,000 146,000
Average receivables during the year 150,000 100,000

a-1. Compute the gross profit percentage for both years. (Round your percentage answers to the nearest whole number. i.e. 0.1234 as 12%.)

a-2. Compute the inventory turnover for both years. (Round your answers to 1 decimal place.)

a-3. Compute the accounts receivable turnover for both years. (Round your answers to 1 decimal place.)

b. Which of the following show a positive or negative trend?

Year 2 Year 1
a-1. Gross profit percentage % %
a-2. Inventory turnover times times
a-3. Accounts receivable turnover times times
Trend
b. Gross profit rate
Inventory turnover
Accounts receivable turnover
Growth in net sales

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