Calculate the inventory turn-over

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The following data have been extracted from the income statement of Llandilo Furniture Store.

                                          2020                      2019

Net sales                        $ 545 600             $601 950

Cost of sales                  332 130                 356 740

Pro?t                           1 02 350                   145 320

Inventory (ending)             74 760                      79 200

Required

Question (a) Calculate the gross profit ratio, profit margin, and expenses to sales ratio for the years 2019 and 2020.

Question (b) Assuming that the inventory at the beginning of 2019 is $63 300, calculate the inventory turn-over for 2019 and 2020.

Question (c) Advise management on any trends in these ratios, and any actions you consider necessary.

Reference no: EM132461440

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