Internal auditing: assurance & advisory services 4th edition

The following information is available for MVF company (dollar amounts are in millions)

2016 2015 2014 2013

net sales $23.2 $16.8 $19.6 $17.4

cost of goods sold 17.1 16.8 15.2 13.5

beginning finished goods inventory 2.3 2.1 1.9 1.5

ending finished goods inventory 2.9 2.3 2.1 1.9

materials purchased 10.6 8.8 7.5 7.1

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 3a above:

describe the challenge in each ratio you observe in 2016.

discuss at least two possible causes of each change observed.

Internal auditing: assurance & advisory services 4th edition

can you please show the calculation for the ratios.