Z Mart, Inc., declared bankruptcy. Let€™s see why. Z Mart reported these figures:

Requirement
Evaluate the trend of Z Mart€™s results of operations during 2010 through 2012. Consider the trends of sales, gross profit, and net income. Track the gross profit percentage and the rate of inventory turnover in each year. Also discuss the role that selling expenses must have played in Z Mart€™sdifficulties.

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Z Mart, Inc. Statements of Income Years Ended December 31 Millions Sales Cost of sales Selling expenses Other expenses Net income (net loss) Additional data: 2012 2011 2010 536.6$35.3 $34.3 26.8 6.0 0.7 S 0.8 29.4 7.5 0.1 (0.4) 27.6 6.3 0.9 $ 0.5 Ending inventory 8.6 $ 7.2 S 7.2 $6.4