Your comparison of the gross margin percent for Jacob Drugs for the yoars 2016 through 2018 indicates a significant decline. This is shown by the following ifformation: (Click the icon to viow the data and additional discussion with the controlloc.) The following additional intormasion is obtained from independent scources and the cliont's records as a means of investpating the controler's explanations: (1) (Click the ioon to view the additional information.) Read the requiremecits. Requirement a. Evaluate the explanation provided by Ackers, Show calculations to support your conclusions. Begin by computing the gross maegin percentage for drug and nondrug sales for 2019 thvough 2016 . (Round your answers to the nearest tenth percent, XXX\%).) Data table Requirements a. Evaluate the explanation provided by Acters. Show calculations to support your condusions: b. Which specific aspects of the clienfs financial statoments require intensive imestigation in this audit? A discussion wth McKaya Ackors, the controler, trings to light two possible explanations. She informs you that the industry gross profit percent in the retal drug industry decined faily stagdly for three yoars, which accounts foe part of the decline. A second factor was the declining percent of the total volume resuting from the pharmacy part of the business. The pharmacy sales raprosent the most peoftable porion of the business, yet the competion from discourt drugstores prevents it from oxpanding as fast as the nondrug ltems such as majazines, candy, and many othor items sold. Ackers foels strongly that these two factors are the cause of the decine. Your comparison of the gross margin percent for Jacob Drugs for the yoars 2016 through 2018 indicates a significant decline. This is shown by the following ifformation: (Click the icon to viow the data and additional discussion with the controlloc.) The following additional intormasion is obtained from independent scources and the cliont's records as a means of investpating the controler's explanations: (1) (Click the ioon to view the additional information.) Read the requiremecits. Requirement a. Evaluate the explanation provided by Ackers, Show calculations to support your conclusions. Begin by computing the gross maegin percentage for drug and nondrug sales for 2019 thvough 2016 . (Round your answers to the nearest tenth percent, XXX\%).) Data table Requirements a. Evaluate the explanation provided by Acters. Show calculations to support your condusions: b. Which specific aspects of the clienfs financial statoments require intensive imestigation in this audit? A discussion wth McKaya Ackors, the controler, trings to light two possible explanations. She informs you that the industry gross profit percent in the retal drug industry decined faily stagdly for three yoars, which accounts foe part of the decline. A second factor was the declining percent of the total volume resuting from the pharmacy part of the business. The pharmacy sales raprosent the most peoftable porion of the business, yet the competion from discourt drugstores prevents it from oxpanding as fast as the nondrug ltems such as majazines, candy, and many othor items sold. Ackers foels strongly that these two factors are the cause of the decine
