a. Calculate the following ratios for each year:

-Gross profit percentage.

-Inventory turnover.

-Cost of materials purchased to cost of finished goods produced.

b. Analyze the results obtained in 1.a. above:

-Describe the change in each ratio you observe in 2016.

-Discuss at least two possible causes of each change observed.

1. The following information is available for MVF Company(dollar amounts are in millions) 2016 2015 2014 2013 $21.7 $19.6 $17.4 16.8 15.2 13.5 2.1 1.9 1.5 Net sales $23.2 Cost of goods sold 17.1 Beginning finished 2.3 goods inventory Ending finished 2.9 goods inventory Materials 10.6 purchased 2.3 2.1 1.9 8.8 17.5 17.1