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please help! cant find the inventory turnover rate (a1) and the gross profit ratio (b1). Will thumbs up :) Required information On January 1, 2024,
please help! cant find the inventory turnover rate (a1) and the gross profit ratio (b1). Will thumbs up :)
Required information On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: The $46.000 beginning balance of inventory consists of 460 units, each costing $100. During January 2024, Big Blast Freworks had the following inventory transactions: January 3 Purchase 1,450 units for $158,050 on account (\$169 each). January 8 Purchase 1,550 units for $176,700 on account ( $114 each). January 12 Purchase 1,650 units for $196,350 on account ( $119 each). January 15 Return 180 of the units purchased on January 12 because of defects. January 19.5el14,800 units on account for $720, 900 . The cost of the units sold is deternined using a. FIfo perpetual inventory system. ?anuary 22 Receive $705;000 from custoriers on accounts receivable. January 24 Pay $500,900 to Inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,500. January 31 pay cash for salaries during january, $135,000, The following information is avallable on January 31,2024. *. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint Determine the number of units remaining from Janurary 12 after 7. Analyze how well Big Blast Fireworks' manages its inventory: a-1. Calculate the inventory turnover ratio for the month of January. (Round your final answer to 1 decimal.) 0-2. If the industry average of the inventory turnover ratio for the month of January is 15 times, is the company managing its inventory more or less efficiently than other companies in the same industry? b-1. Calculate the gross profit ratio for the month of January. (Round your final answer to 1 decimal.) b-2 If the industry average gross profit ratio is 28%, is the company more or less profitable per dollar of sales than other companies in the same industry? c. Is the company's strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower vo/ume of more expensive items Step by Step Solution
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