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hompson TV and Appliance reported the following in its 2016 financial statements: 2016 Sales $420,000 Cost of goods sold: Inventory, January 1 82,000 Net purchases
hompson TV and Appliance reported the following in its 2016 financial statements:
2016 | |
Sales | $420,000 |
Cost of goods sold: | |
Inventory, January 1 | 82,000 |
Net purchases | 340,000 |
Goods available for sale | 422,000 |
Inventory, December 31 | 86,000 |
Cost of goods sold | 336,000 |
Gross profit | $ 84,000 |
Thompson's 2016 gross profit ratio is:
25%.
19%.
20%.
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