1/ Nueva Company reported the following pretax data for its first year of operations.

Net sales		7,520
Cost of goods available for sale		5,750
Operating expenses		1,648
Effective tax rate		30	%
Ending inventories:
If LIFO is elected		628
If FIFO is elected		813

What is Nueva's gross profit ratio (rounded) if it elects FIFO? (Round your answer to two decimal places e.g., 0.1234 as 12.34%.)

Multiple Choice

• 56.26%.

• 63.78%.

• 31.89%.

• 34.35%.

2/ Thompson TV and Appliance reported the following in its 2018 financial statements:

		2018
Sales	$	426,000
Cost of goods sold:
Inventory, January 1		62,000
Net purchases		333,000
Goods available for sale		395,000
Inventory, December 31		96,000
Cost of goods sold		299,000
Gross profit	$	127,000

Thompson's 2018 inventory turnover ratio is: (Round your answer to two decimal places.)

Multiple Choice

• 3.11.

• 5.39.

• 3.78.

• 4.44.