Calculate the the gross profit percentage

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Reference no: EM132482378

The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances.

Cash

$ 25,830

Accounts receivable

45,700

Note receivable, due 2020

7,500

Merchandise inventory

33,700

Prepaid insurance

2,150

Supplies

1,210

Equipment

41,500

Accumulated depreciation, equipment

21,500

Note payable to bank, due 2020

15,000

Accounts payable

34,250

Interest payable

150

Sales

520,000

Sales discounts

1,200

Cost of goods sold

334,110


Quetsion 1:
Accounts Receivable at December 31. 2018, was $57,550. Merchandise inventory at December 31, 2018, was $56.600. Based on the account balances above, calculate the following:

a. The gross profit percentage.

b. Working capital.

c. The current ratio.

d. The inventory turnover.

e. The accounts receivable turnover. All sales were on credit.

Reference no: EM132482378

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