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Refer to the data given. 1. Compute all ratio values to answer the following questions: a. Which company has the highest and which company has
Refer to the data given.
1. Compute all ratio values to answer the following questions:
a. Which company has the highest and which company has the lowest gross profit percentage?
b. Which company has the highest and which has the lowest rate of inventory turnover?
(Round the inventory turnover rates to one decimal place, and the gross profit percentage to the nearest tenth percent)
2. Based on your figures, which company appears to be the most profitable?
Company Beginning Net Ending Cost of Gross Net Sales Inventory Purchases Inventory Goods sold Profit $ 100,000 $ 20,000 $ 59,000 $ 16,000 $ 63,000 $ 37,000 125,000 28,000 90,000 45,000 73,000 52,000 Sutherland Crossen Williams 96,000 28,000 52,000 20,000 60,000 36,000 Scott 88,000 7,000 29,000 3,000 33,000 55,000Step by Step Solution
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