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. Cost of Goods Sold Gross Sales Revenue Inventory Sales Returns and Allowances 2018 $375,000 400,000 56, 410 10,000 2017 $358,000 400,000 34,000 2,000 2016 $334,000 400,000 29,425 3,000 Required: Analyze the financial information to identify three observations that lead to concerns that the inventory will need to be written down to comply with the LCM/NRV rule. 1. Calculate the gross profit ratio for the three years. 2. An observation compounding the problems noted in 1 above is: 3-a. Determine the inventory turnover ratio and days to sell inventory for 2018 and 2017. 3-b. What do the calculations demonstrate about Merchandise Mavens Corporation's inventory turnover ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Calculate the gross profit ratio for the three years. (Round your answers to 1 decimal place.) 2018 2017 2016 Gross Profit Percentage % % %