Question

Marthas Beauty Products Ltd. reported the figures below at December 31, 2017, 2016, and 2015. The business has declared bank
s. Financial information vel nad Marthas Beauty Products Ltd. Statement of Income For the Years Ended December 31, 2017, 201
Consider the trends of sales, gross profit, and net income. The sales 7, the gross profit C V , and the net income Now calcul
Consider the trends of sales, gross profit, and net income. The sales the gross profit Vand the net income Now calculate the
Consider the trends of sales, gross profit, and net income. The sales the gross profit , and the net income Now calculate the
decimal place.) 2015 2017 C 2016 D Inventory turnover L The gross profit percentage Marthas Beauty Products ha 2017 signific
. This suggests that The gross profit percentage Marthas Beauty Products had to 2017 significantly while the rate of invento
Inventory turnover The gross profit percentage Marthas Beauty Products had to 2017. significantly while the rate of inventor
Inventory turnover The gross profit percentage Marthas Beauty Products had to 2017 significantly while the rate of inventory
significantly while the rate of inventory turnover . This suggests that V its merchandise more and more just to sell the good
Inventory turnover The gross profit percentage Marthas Beauty Products had to 2017 significantly while the rate of inventory
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Answer #1
Martha's Beauty Products Ltd.
Statement of Income Amount in Thousands
2017 2016 2015
Sales (A) $       42.00 $       39.20 $       36.80
Less: Cost of Sales $       34.10 $       31.00 $       28.90
Gross Profit (B) $         7.90 $         8.20 $         7.90
Gross Profit Percentage A/B 18.810% 20.918% 21.467%
The Sales increased, the Gross profit stayed the same , and the net income slid to net loss
Inventory Turnover - Cost of Sales/ Average Inventory
2017 2016 2015
Cost of Sales(A) $       34.10 $       31.00 $       28.90
Averages Inventory (B) $         8.70 $         7.45 $         6.75
Inventory Turnover - A/B 3.9 4.2 4.3 times
The gross profit % Dropped
The inventory Turnover deteriorated
This suggests that Martha 's Beauty Products had to discount
end result was a Net loss
Selling expenses increased
to advertise heavily heavily,
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