Q14

Anthony Thomas Candies (ATC) reported the following financial data for 2021 and 2020:

	2021				2020
Sales	$	312,000			$	290,000
Sales returns and allowances		7,600				4,200
Net sales	$	304,400			$	285,800
Cost of goods sold:
Inventory, January 1		50,000				32,000
Net purchases		137,000				135,000
Goods available for sale		187,000				167,000
Inventory, December 31		75,000				50,000
Cost of goods sold		112,000				117,000
Gross profit	$	192,400			$	168,800

ATC's gross profit ratio (rounded) in 2021 is: (Round your answer to one decimal place e.g., 0.123 as 12.3%.)

Multiple Choice

• 63.2%.

• 61.2%.

• None of these answer choices are correct.

• 56.1%.