Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have been provided with the following information about GetWell Vitamin - a company that specialises in health supplements. They sell wholesale to stores such
You have been provided with the following information about GetWell Vitamin - a company that specialises in health supplements. They sell wholesale to stores such as pharmacies and supermarkets. They have noticed an increasing demand in vitamin-taking since COVID19. GetWell Vitamin has shifted to also offering retail sales through their website. Since the offering retail sales a year ago, they have grown their retail customer base and increase their revenue in retail segment. Retail customers pay by either credit card or Afterpay. Select the ratio that is most likely to indicate an anomaly in a specific account the auditor should investigate for potential misstatement. Ratio 2023 2022 Current ratio 1.25 1.2 Receivable Turnover Ratio 21.3 18.9 Days in Receivables 17.1 19.3 Inventory turnover 7.5 10.4 Net Profit Ratio 3.5% 1.9% Return on Asset Ratio 5.5% 3.9% Return on Equity Ratio 39.7% 37.5%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started