aluchiuyanne/Downloads/BUS.3260-20ftt2.pdf 38. Which of the following would have the highest gross margin? A. Birks jewellers B. IGA grocery C. Holt Renfrew D. IKEA furniture E. Dollarama 39. Celestial Navigation is a store for people who collect nautical items and use them to decorate their homes. Last year its net sales totalled S120,500. The value of the items it sold was $72,300. Taxes for the year ran $7,680. The only expenses that the operation has are (1) licenses for $300, (2) salaries to the owner and one part-time assistant for S27,000. (3) administrative expenses of $500, and (4) utilities at $1,200. Calculate the net profit margin for Celestial Navigation 1.9.6 percent B. 23.9 percent C. 40 percent D. 60.2 percent E. 612 40. If net profit measures the profitability of an entire firm, then what measures the profitability of merchandising activities? A. Accounts receivable B. Asset tumover C. Gross margin D. Owner's equity E. Shrinkage 41. When Cal went to purchase a new filter for his aquarium, he noticed that the pet shop offered a 10% discount for patrons who paid in cash. Why would the pet store make this offer? A. To decrease its accrued liabilities B. To decrease its liquidity C. To ease the financial burden of accounts receivable D. To increase its fixed assets E. To increase its inventory turnover MacBook Air BO 11 DO F FA F7 11 FR A * # 3 $ 4 % 5 & 7 6 ( 9 8 0 E R. T Y U 0 ownloads/BUS.3260-20ftt2.pdf D. Owner's equity E. Shrinkage 41. When Cal went to purchase a new filter for his aquarium, he noticed that the pet shop offered a 10% discount for patrons who paid in cash. Why would the pet store make this offer? A. To decrease its accrued liabilities B. To decrease its liquidity C. To ease the financial burden of accounts receivable D. To increase its fixed assets E. To increase its inventory turnover 42. The Robin's Nest offers upscale children's furniture from newborn through grade school. The shop has total assets of $350,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, and end-of-the-year inventory valued at $23,000. What is the retailer's inventory turnover? A. 6.6 percent B. 8.2 percent C.31.9 percent D. 32.9 percent E. Cannot be determined from the information given 43. A store that sells bath oils, natural sponges, and other related items has an average retail inventory of S15.000. Its net sales for last year were $62.000 total assets were $500,000 and its net profit was $9.000 MacBook Air 30 608 F3 4 * $ % 5 & 7 4 6 Q 8 9