Question

II Weston Hop Refer to the data given. (Click the loon to view the data.) Read the requirements orrect: 0 11) 0/1) Requirement 1. Compute all ratio values to answer the following questions: • Which company has the highest and which company has the lowest gross profit percentage? • Which company has the highest and which has the lowest rate of inventory tumover? Let's calculate the gross profit percentage and inventory turnover for each company (Round the inventory turnover rates to one decimal place, XX, and the gross proft percentage to the nearest tenth percent, XX%) Genel Company Reference Dunn Hults Beginning Net Ending Cost of Gross Thomas Company Net Sales Inventory Purchases Inventory Goods sold Profit Dunn $ 104,000 $ 22,000 $ 59,000 $ 18,000 $ 63,000 $ 41.000 Huits 140,000 28,000 90.000 24,000 94,000 46,000 Cox 4000 34,000 53,000 25,000 62,000 32.000 Thomas 83.000 7,000 31.000 2,000 36,000 47,000 Enter any number in the Done parts 3 remaining k Antwer Cox Print

Answer 1

Dunn: Gross profit percentage = 39%

Hults: 32.8%

Cox: 34%

Thomas: 56.6%

Thomas Company has the highest percentage whereas Hults has the lowest

Inventory turnover

Dunn= 3.15%

Hults= 3.61

Cox= 2.06

Thomas= 8

Formula= COGS/Avg. Inventory

The thomas has the highest and cox has the lowest rate of inventory turnover