Peachey
Sep 28, 2009, 01:23 PM
Hi I am in a little trouble, I need to calaculate the gross profit ratio, net Income and the inventory turnover ratio.
Company 1... Company 2
500,000... 800,000--------Sales
350,000... 500,000--------Cost of Goods Sold
75,000... 60,000... Inventory, Beginning of year
25,000... 40,000... Inventory, End of year
25,000... 10,000... Office Rent Expense
My working Gross Profit Ratio
150,000/500,000 = 0.3 x 100% = 30%
300,000/800,000 = 0.375 x 100% = 37.5%
Net Income
Revenue:
Sales... 500,000----------800,000
Expense:
Office Rent Expense... 25,000... 10,000
Net Income---------------.=475,000... 790,000
Inventory Turnover Ratio = This is my problem
Company 1... Company 2
500,000... 800,000--------Sales
350,000... 500,000--------Cost of Goods Sold
75,000... 60,000... Inventory, Beginning of year
25,000... 40,000... Inventory, End of year
25,000... 10,000... Office Rent Expense
My working Gross Profit Ratio
150,000/500,000 = 0.3 x 100% = 30%
300,000/800,000 = 0.375 x 100% = 37.5%
Net Income
Revenue:
Sales... 500,000----------800,000
Expense:
Office Rent Expense... 25,000... 10,000
Net Income---------------.=475,000... 790,000
Inventory Turnover Ratio = This is my problem