Selected financial statement data from Western Colorado Stores is shown below.
Required:
1. Compute the gross profit ratio for 2009.
2. Compute the inventory turnover ratio for 2009.
$\begin{array}{lrr}&2009&2008\
\text { Net sales } & \$ 625,000 & \$ 690,000 \
\text { Cost of goods sold } & 500,000 & 490,000 \
\text { Operating expenses } & 105,000 & 85,000 \
\text { Inventory } & 90,000 & 70,000
\end{array}$

Question

Selected financial statement data from Western Colorado Stores is shown below.
Required:
1. Compute the gross profit ratio for 2009.
2. Compute the inventory turnover ratio for 2009.
 $\begin{array}{lrr}&2009&2008\
\text { Net sales } & \$ 625,000 & \$ 690,000 \
\text { Cost of goods sold } & 500,000 & 490,000 \
\text { Operating expenses } & 105,000 & 85,000 \
\text { Inventory } & 90,000 & 70,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Selected financial statement data from Western Colorado Stores is shown below.
Required:
1. Compute the gross profit ratio for 2009.
2. Compute the inventory turnover ratio for 2009.
 $\begin{array}{lrr}&2009&2008\
\text { Net sales } & \$ 625,000 & \$ 690,000 \
\text { Cost of goods sold } & 500,000 & 490,000 \
\text { Operating expenses } & 105,000 & 85,000 \
\text { Inventory } & 90,000 & 70,000
\end{array}$

Selected Financial Statement Data from Western Colorado Stores Is Shown