Question

Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended January 29, 2016, the company reported average inventories of $2,900 (in millions) and an inventory turnover of 4.83. Average total fixed assets were $2,190 (million) and the fixed asset turnover ratio was 9.32.

1. 1-a. Calculate Dollar General’s net sales and cost of goods sold.
   Check my work Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended January 29, 2016, the company reported average inventories of $2,900 (in millions) and an inventory turnover of 4.83. Average total fixed assets were $2,190 (million) and the fixed asset turnover ratio was 9.32. Required: eBook 1-a. Calculate Dollar General's net sales and cost of goods sold. 1-b. Compute the gross profit percentage. 2. Is this an improvement from the gross profit percentage of 30.7 percent earned during the previous year? Hint Complete this question by entering your answers in the tabs below. Print Req 1A Req 1B Reg 2 References Calculate Dollar General's net sales and cost of goods sold. (Enter your answers in whole dollars.) Net Sales Cost of Goods Sold $ $ 2,041 140,070,000 < Req1A Req 1B >
   
2. 1-b. Calculate Dollar General’s net sales and cost of goods sold.

Answer 1

1-a.	Net Sales	$20,410,800,000
	Cost of Goods Sold	$14,007,000,000
	Fixed asset turnover =	Net sales ÷ Average fixed assets
	9.32 = Net sales ÷ $2,190,000,000
	Net sales = 9.32 x $2,190,000,000
	Net sales = $20,410,800,000
	Inventory turnover =	Cost of goods sold ÷ Average inventory
	4.83 = Cost of goods sold ÷ $2,900,000,000
	Cost of goods sold = 4.83 x $2,900,000,000
	Cost of goods sold = $14,007,000,000
1-b.	Gross Profit Percentage	31.37%
	Net Sales	$20,410,800,000
	Cost of Goods Sold	$14,007,000,000
	Gross Profit	$6,403,800,000
	Gross Profit Percentage	31.37%
	($6,403,800,000/$20,410,800,000)