Chapter 7 Comprehensive and General Ledger Problems instruction KQuestion 7 (of 7) Save & Exit 7. value: 10.00 points Merchandise Mavens Corporation sells goods throughout North America. One of its product lines has recently reported the following information to you at head office. Based on this information, you have become concerned that the company is experiencing difficulties selling the product. 2015 2014 2013 Cost of Goods Sold Gross Sales Inventories Sales Returns and Allowances $375,000 $358,000 $334,000 400,000 400,000 400,000 34,000 2,000 56,410 10,000 29,425 3,000 Required An analysis of the financial information to identify three observations that lead to concerns that the inventory will need to be written down to LCM will be as follows 1. Calculate the gross profit ratio for the three years. (Round your answers to 1 decimal place.) 2015 2014 2013 Gross Profit Percentage 2. An observation compounding the problems noted in 1 above is: e recent increase in suggests that customers are not satisfied with MMC's products