Selected financial statement data from Western Colorado Stores is shown below. (Round your answers
2 decimal places.)
Net sales
2016
2015
$825,000 $845,000
Cost of goods sold
660,000 680,000
Operating expenses
120,000 100,000
Inventory
122,000 98,000
Required:
1. Compute the gross profit ratio for 2016.
Gross profit ratio
20.00%
2. Compute the inventory turnover ratio for 2016.
Inventory turnover ratio
6.00