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1. Calculate Return on Sales . Based on the guidelines in the textbook and the companys 2018 value of 24.3% and 2019 value of 24.9%,
1. Calculate Return on Sales. Based on the guidelines in the textbook and the companys 2018 value of 24.3% and 2019 value of 24.9%, how would you assess the companys 2020 value?
2. Calculate Inventory Turnover Ratio. Based on the guidelines in the textbook, how would you assess the companys efficiency with an industry average of 60.4 days?
Revenue (Gross Sales) $ 3,413,060.00 Cost of Goods Sold: Merchandise Inventory: Jan 1st, 2020 Merchandise Purchases Goods Available for Sale 91,450.00 515,585.00 $ 607,035.00 [M] $ 88,810.00 Merchandise Inventory: Dec 31st, 2020 Total Cost of Goods Sold $ 518,225.00 IN GROSS PROFIT $ 2,884,835.00 $ 1,115,000.00 28,220.00 Operating Expenses: Salaries and Wages Advertising Shipping and Transportation Depreciation: Warehouse & Product Repairs Total Selling and Shippping Expenses $ 34,870.00 31,110.00 $ 1,209,200.00 [P] Merge 460,222.00 12,245.00 33,535.00 Administration Expenses: Salaries and Wages Supplies Utilities Depreciation: Office Equipment Interest Expenses Miscellaneous Expenses/Business Meetings Total Administration Expenses 11,700.00 28,880.00 15,220.00 is_561,802.001101 TOTAL OPERATING EXPENSES $ 1,771,022.00 [R] Operating Income (Income Before Taxes) Income Taxes (Cumulative) $ $ 1,113,813.00 [S] 292,197.00 NET INCOME (FINAL) $ 821,616.00 TStep by Step Solution
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