Using Ontario Furniture's income statement for the year ended December $31,2023,$ provided, compute these ratios to evaluate Ontario Furniture's performance:

Gross margin percentage

Inventory turnover $($ending inventory one year earlier, at December $31,2022,$ was $$58,000.$ Ending inventory this year is $$70,000.)$

Compare your figures with the $2022$ gross margin percentage of $40$ percent and the inventory turnover rate of $4\mathrm{.}03$ times. Does the two$-$year trend suggest that Ontario Furniture's profits are increasing or decreasing?

$($Click the icon to view the income statement.$)$

Gross margin percentage $($Round your answer to one decimal place.$)$

Ontario Furniture's gross margin percentage is

$34\mathrm{.}9\%$

The decrease in gross margin percentage suggests

worse

profitability this year versus last year.

$2.$ Inventory turnover $($Round your answer to two decimal plac

Ontario Furniture's inventory turnover for $2023$ is $$ times.