Question 2

ABC Retail Corporation has reported the following for the year ended December 31, 2023:

• Total Sales: $5,000,000
• Total Purchases: $3,000,000
• Ending Inventory: $800,000
• Beginning Inventory: $500,000
• Selling and Administrative Expenses: $700,000
• Interest Paid: $100,000
• Taxes Paid: $150,000
• Net Income: $450,000

Requirements:

• Calculate the Cost of Goods Sold.
• Determine the Gross Profit.
• Calculate the Inventory Turnover Ratio.
• Determine the Return on Sales (Net Profit Margin).
• Calculate the Interest Coverage Ratio.