3. Complete the following grid: Department Department D B $78.0 $32.5 $1.5 Sales $45.2 12.0 3.5 4.5 Turnover $.4 $15.0 $4.5 $7.1 Average Inventory COGS $.6 $52.3 $41.3 $.7 $12.9 $15.8 Gross Margin- percent GMROI Solving Problems 1. A retailer's current assets are $7 The retailer wants to borro tells him that, to be 10 2.0. What are there his current liabilities to constant? ent assets are $7.4 million. Presently, his current ratio is 1.5. vants to borrow money to fund an expansion; however, a lender im that, to borrow money, the retailer must bring his current ratio up are the retailer's current liabilities? By how much must he reduce liabilities to obtain a loan, assuming that current assets remain 2. Complete the following grid: Net Sales Cast of goods sold Gross margin-dollars Gross margin-percent Expenses-dollars Expenses-percent Net income-dollars Net income-percent Dollars expressed in millions Store 1 Store 2 Store 3 Store 4 Store 5 Store 6 $12. 0 80-7 $155.0 1,438.8.131.6 $4,056.7 6.1 $42.6 59.2 $951.2 $90. 0 1,619.5 $5.9 $38.1 95.8 $487.6 41.6 $2,387.2 149.2% 47.2% 61.8% 33.9% 31.6% 58.8% $4.2 31-9 $88.2 464.9 $41.1 2,259,7 35.0% 39.51 56.9% 32.3% 31.2% 55.7% $6.2 $7.6 $22.7 $0.5 $128.5 4.22 7.72 4.9% 1.6% 0.4% 3.22 1.7 Review the component percentages for each store in problem 2 above. Which store is the best performer? The poorest performer? What advice would you give to the poorest performer relative to improving performance? Suggest how to increase net income by increasing gross margin and/or decreasing expenses by specific dollar amounts