You want to own and operate a retail business and before you dive into your own retail store you decide to examine the inventory and
sales of two publicly traded retailers. You were able to obtain the following summarized information for Carla Vista Goods Inc. and
Tamarisk Refunded Ltd.:
Carla Vista
Goods Inc.
Tamarisk
Refunded Ltd.
Beginning Inventory January 1st, 2023
$303,000
$542,000
Ending Inventory December 31, 2023
$585,000
$767,000
Ending Inventory December 31, 2024
$764,000
$812,000
Cost of Goods Sold - 2023
$4,488,770
$1,251,360
Cost of Goods Sold - 2024
$6,660,800
$3,490,200
Sales - 2023
$6,149,000
$3,792,000
Sales - 2024
$7,240,000
$4,986,000
(a)
Calculate the gross margin and gross margin ratio. (Round gross margin ratio to 1 decimal place, e.g. 61.5%).
Carla Vista Goods
2023
2024
Gross
margin
$
$
Gross
margin
ratio
%
%
Tamarisk Refunde
2023
$
%