(1) Calculate the following four indicators, “gross profit ratio”,
Case 7: The Profit-loss statement and profitability (15 marks)You are provided with the following table about a retail business (in $):20182019Net sales120,000160,000Cost of goods sold80,000100,000Gross profit( )( )Operating expenses30,00032,000Net profit()( )Inventory (ending balanceEnding balanceEnding balance 52,00046,000 in 2016)50,000Required:(1) Calculate the following four indicators, “gross profit ratio”, “profit margin”,”(operating) expenses to sales ratio”, and “inventory turnover” for year 2017 andyear 2018. (10 marks)(2) Based on the […]