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angelamcc2007
May 25, 2007, 04:23 AM
Debtor days are 3 months
Debtors at end of period are £200,000
Cost of sales is £600,000
Operating asset turnover is 5 times

Gross profit to sales is

A. 10%
B.15%
c.20%
d.25%

Can anyone help with the answer, also how did you calculate it

Many thanks