3. Partial information on Statement of Profit and Loss Accounts for Cronuts Sdn. Bhd.for three consecutive years:202120202019(RM)1,000,000(RM)800,000(RM)700,000Net salesCost of goods sold:Beginning inventory40,000740,000180,000600,000100,000220,000840,000180,000Add: Purchases660,000220,000620,000180,000Less: Ending inventory340,000720,000280,000Gross profitRequired:Compute the following ratios for year 2021 and 2020:(a) Inventory turnover rate.(b) Number of days' sales in inventories (use 365 days).(c) Gross profit margin on sales.

Inventory is considered as part of current assets. There are various ratios relating to inventory…

3. Partial information on Statement of Profit and Loss Accounts for Cronuts Sdn. Bhd. for three consecutive years: 2021 2020 2019 (RM) 1,000,000 (RM) 800,000 (RM) 700,000 Net sales Cost of goods sold: Beginning inventory Add: Purchases 220,000 840,000 340,000 180,000 660,000 220,000 620,000 180,000 40,000 740,000 180,000 Less: Ending inventory Gross profit 720,000 280,000 600,000 100,000 Required: Compute the following ratios for year 2021 and 2020: (a) Inventory turnover rate. (b) Number of days' sales in inventories (use 365 days). (c) Gross profit margin on sales.

3. Partial information on Statement of Profit and Loss Accounts for Cronuts Sdn. Bhd. for three consecutive years: 2021 2020 2019 (RM) 1,000,000 (RM) 800,000 (RM) 700,000 Net sales Cost of goods sold: Beginning inventory Add: Purchases 220,000 840,000 340,000 180,000 660,000 220,000 620,000 180,000 40,000 740,000 180,000 Less: Ending inventory Gross profit 720,000 280,000 600,000 100,000 Required: Compute the following ratios for year 2021 and 2020: (a) Inventory turnover rate. (b) Number of days' sales in inventories (use 365 days). (c) Gross profit margin on sales.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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