Question
The following information pertains to two competitors, Superior Inc. and Michigan Corp. Company Beginning Inventory Ending Inventory Cost of Goods Sold Superior Inc. $172,000 $144,000
The following information pertains to two competitors, Superior Inc. and Michigan Corp.
| Company | Beginning Inventory | Ending Inventory | Cost of Goods Sold | |||
|---|---|---|---|---|---|---|
| Superior Inc. | $172,000 | $144,000 | $1,237,626 | |||
| Michigan Corp. | $425,000 | $453,000 | $2,267,304 |
Superior Inc. reported sales revenues of $1,599,000, and Michigan Corp. reported sales revenue of $3,354,000.
a. Calculate the inventory turnover ratio for Superior and Michigan. (Round answers to 1 decimal place, e.g. 10.5.)
| Superior Inc. | Michigan Corp. | |||
|---|---|---|---|---|
| Inventory turnover ratio | times | times |
b. Calculate the gross margin and gross margin ratio for Superior and Michigan. (Round gross margin ratio to 1 decimal place, e.g. 10.5%.)
| Superior Inc. | Michigan Corp. | |||||
|---|---|---|---|---|---|---|
| Gross margin | $Enter a dollar amount. | $Enter a dollar amount. | ||||
| Gross margin ratio | Enter percentages rounded to 1 decimal place. | % | Enter percentages rounded to 1 decimal place. | % | ||
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