The following information is available for Zoes Activewear Inc. for three recent fiscal years. Instructions a. Calculate

Question:

The following information is available for Zoe’s Activewear Inc. for three recent fiscal years.

2022 2021 2020 Inventory (12/31) $ 553,000 $ 568,000 $ 332,000 Net sales 1,948,000 1,725,000 1,311,000 Cost of goods sold 1,552,000 1,288,000 947,000

Instructions

a. Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021.

b. Based on the ratios calculated in part (a), did Zoe’s liquidity and profitability improve or deteriorate in 2022?

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Survey Of Accounting

ISBN: 9781119594536

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt

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Question Posted: Dec 17, 2020 01:54 AM

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The following information is available for Zoes Activewear Inc. for three recent fiscal years. Instructions a. Calculate

Question:

2022 2021 2020 Inventory (12/31) $ 553,000 $ 568,000 $ 332,000 Net sales 1,948,000 1,725,000 1,311,000 Cost of goods sold 1,552,000 1,288,000 947,000

Step by Step Answer:

a b In 2022 Zoes Activewear experienced a deterioration in liqu...View the full answer

Survey Of Accounting

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