The following information was taken from the accounting records of Chicoutimi Lte and Jonquire Lte at December 31, 2016. The two companies are competitors.

Calculate the gross margin, gross margin ratio, and inventory turnover ratio at December 31, 2016, for: i. Chicoutimi Lte. ii. Jonquire Lte. (Round inventory turnover ratio to 1 decimal place)

During the December 20, 2016, inventory count at Chicoutimi Lte, $79,700 of inventory shrinkage was identified. It had not been recorded in the inventory account. i. Prepare the entry to record the inventory shrinkage of $79,700

ii. Recalculate Chicoutimis gross margin, gross margin ratio, and inventory turnover ratio after the adjusting journal entry is made. (Hint: You need to adjust the ending inventory balance for 2016 and the cost of goods sold.) (Round gross margin ratio to 1 decimal place, and inventory turnover ratio to 1 decimal place)

Ending inventory, Dec. 31, 2015 Ending inventory, Dec. 31, 2016 Cost of goods sold, 2016 Sales for 2016 Chicoutimi Lte $434,400 444,300 2,298,772 6,049,400 Jonquire Lte $150,200 191,100 938,144 2,468,800