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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 41
Calculating gross profit percentage and inventory turnover to evaluate a business
LanWan Software, Inc., earned sales revenue of $65,000,000 in 2012. Cost of goods sold was $39,000,000, and net income reached $9,000,000, the company's highest ever. Total current assets included inventory of $3,000,000 at December 31, 2012. Inventory was $5,000,000 on December 31, 2011.
Requirement
1. Compute the company's gross profit percentage and rate of inventory turnover for 2012.
LanWan Software, Inc., earned sales revenue of $65,000,000 in 2012. Cost of goods sold was $39,000,000, and net income reached $9,000,000, the company's highest ever. Total current assets included inventory of $3,000,000 at December 31, 2012. Inventory was $5,000,000 on December 31, 2011.
Requirement
1. Compute the company's gross profit percentage and rate of inventory turnover for 2012.
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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