Question: Selected financial data for Quick Sell, Inc., a retail store, appear as follows. Year 2 Year 1 Sales (all on account) $ 797,000 $ 609,000

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

Year 2 Year 1

Sales (all on account) $ 797,000 $ 609,000

Cost of goods sold 443,000 378,000

Average inventory during the year 111,000 101,000

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?

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