Financial information for Buckle is presented in Appendix B at the end of the book. Required: 1.

Question:

Financial information for Buckle is presented in Appendix B at the end of the book.
Required:
1. For the most recent year, what is the amount of inventory in the balance sheet? What does this amount represent?
2. Buckle refers to its cost of goods sold using a different name. What is it?
3. For the most recent year, what is the amount of cost of goods sold in the income statement? What does this amount represent?
4. Calculate Buckle's and average days in inventory for the most recent year.
5. Calculate Buckle's gross profit ratio for each of the three years. Do you notice any trend?
6. For the most recent year, calculate Buckle's ratio of operating expenses to net sales.
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...