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Gross Profit rate and turnover ratios

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Instructions
Compute the following for 2004:
(a) Gross profit rate.
(b) Inventory turnover.
(c) Receivables turnover.

Selected data for Connie's Store appear below.
2004 2003
Net sales $800,000 $520,000
Cost of goods sold 600,000 345,000
Inventory at end of year 65,000 85,000
Accounts receivable at end of year 90,000 70,000

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This provides the steps to calculate the Gross Profit rate and turnover ratios

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Instructions
Compute the following for 2004:
(a) Gross profit rate.
(b) Inventory turnover.
(c) Receivables ...

Purchase this Solution
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