Question
Rolex Company reports the following information. Current Year Prior Year Sales $ 260,000 $ 200,000 Cost of goods sold 169,000 152,000 1. Compute the gross
Rolex Company reports the following information.
| Current Year | Prior Year | |
|---|---|---|
| Sales | $ 260,000 | $ 200,000 |
| Cost of goods sold | 169,000 | 152,000 |
1. Compute the gross profit ratio for each of the two years reported. 2. Did the company outperform or underperform the industry average gross profit ratio of 30% in the current year? 3. Did the gross profit ratio improve or decline in the current year?
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Intermediate Accounting Volume 2
Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick
7th Edition
1259108023, 9781259108020
