Exercise 15-31 (Algo) Gross profit ratio LO A1 Rolex Company reports the following information. Current Year Prior Year Sales $ 320,000 $ 300,000 Cost of goods sold 240,000 255,000

1. Compute the gross profit ratio for each of the two years reported.

2. Did the company outperform or underperform the industry average gross profit ratio of 20% in the current year?

3. Did the gross profit ratio improve or decline in the current year?