Help Sa Sales all on account Cost of goods sold Average inve

Help Sa Sales (all on account) Cost of goods sold Average inventory during the year Average receivables during the year 778,880 684,88 447,08 391,00e 138,680 150,000 108,000 128,880 0-1. Compute the gross profit percentage for both years (Round your percentage answers to the nearest w as 12%) a-2. Compute the inventory turnover for both years. (Round your answers to 1 decimal place.) o-3. Compute th b. Which of the following show a positive or negative trend? hole number. i.e. 0.1234 e accounts receivable turnover for both years. (Round your answers to 1 decimal place.) ear 2 ear 1 Gross profit percentage 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

Solution

Trend:

			Year 2		Year 1
a	Sales		7,78,000		6,04,000
b	cost of goods sold		4,47,000		3,91,000
c= a-b	Gross profit		3,31,000		2,13,000
d= c/a	Gross profit %		43%		35%
e	average inventory		1,38,000		1,28,000
f= b/e	inventory turnover		3.2		3.1
g	average receivables		1,50,000		1,00,000
h= a/h	Accounts receivable turnover		5.2		6.0