BC Training reports sales revenue of $2,200,000. Average inventory during the year was $200,000. The inventory turnover ratio for the year is 8.0. What amount of gross profit would the company report in its income statement?
What will be an ideal response?
| Inventory turnover ratio |  ? | = 8.0 times |
Given sales of $2,200,000 and calculating COGS of $1,600,000, gross profit is $600,000.
| Sales | $2,200,000 |
| ? Cost of goods sold | 1,600,000 |
| = Gross profit | $600,000 |
You might also like to view...
Which of the following is a disad of smaller groups?
An insurance company would like to perform a chi-square test to investigate whether a difference exists in the proportion of male and female teenagers who text while they drive. A random sample of 80 male teenagers found that 50 indicated they texted while driving. A random sample of 120 female teenagers found that 65 indicated they texted while driving. How many degrees of freedom does the chi-square critical value have?
A. 3 B. 1 C. 4 D. 2
Horizontal analysis is a technique for evaluating financial statement data
A) for one period of time. B) over a period of time. C) on a certain date. D) as it may appear in the future.
All ALJ decisions must include a statement of findings of fact and conclusions of law and the reasons or basis for them, as well as a statement of the appropriate relief
a. True b. False Indicate whether the statement is true or false