Question #$3$

Compute the gross margin percentage and the rate of inventory turnover for $2023,$ rounded to one decimal place. Inventory on hand at September $30,2022,$ was $$40,000.$ For $2022,$ Harrison Trading Company's gross margin percentage was $34\mathrm{.}8$ percent and the inventory turnover rate was $3\mathrm{.}9$ times. Does the $2-$year trend in these ratios suggest improvement or deterioration in profitability?

$\backslash$table$[[\backslash$table$[[$HARRISON TRADING COMPANY$],[$Adjusted Trial Balance$],[$September $30,2023]]],[$Account Title,Debit,Credit$],[$Cash$,$$$14,000,],[$Accounts receivable,$9,000,],[$Inventory$,42,000,],[$Supplies$,3,000,],[$Building$,280,000,],[$Accumulated amortization$-$building,,$$196,000$