Respuesta :
Answer:
Gross profit ratio= 20; inventory turnover ratio= 4.00.
Explanation:
Given option in the question are incorrect for gross profit ratio as option given are for Inventory turnover ratio.
Given: Net sales= $420000.
Cost of goods sold= $336000
Gross profit= $84000
Now, claculating the gross profit ratio.
Formula; Gross profit ratio= [tex]\frac{Gross\ profit}{Net\ sales} \times 100[/tex]
⇒ Gross profit ratio= [tex]\frac{84000}{420000}\times 100[/tex]
∴ Gross profit ratio= 20
Now, finding the Inventory turn over ratio.
Formula; [tex]Inventory\ turnover\ ratio= \frac{cost\ of\ good\ sold}{average\ inventory}[/tex]
Average inventory= [tex]\frac{Beginning\ inventory + ending\ inventory}{2}[/tex]
⇒ Average inventory= [tex]\frac{82000+86000}{2}[/tex]
∴ Average inventory= [tex]\frac{168000}{2} = 84000[/tex]
Next, [tex]Inventory\ turnover\ ratio= \frac{336000}{84000}[/tex]
⇒ [tex]Inventory\ turnover\ ratio= 4.00[/tex]
Hence, Gross profit is 20 and inventory turnover ratio is 4.00
