Can you explain the correct approach to solve this general accounting question? Assume Apex Inc. made sales of $800 million during 2022. Cost ofgoods sold for the year totaled $520 million. At the end of 2021, ApexInc.'s inventory was $180 million, and the company ended 2022 withinventory of $220 million.a) Compute Apex Inc.'s gross profit percentage for 2022.b) Compute Apex Inc.'s inventory turnover ratio for 2022.

Step 1: Definition of Key Terms Gross Profit Percentage:Gross profit percentage (or gross margin…

Answered: Assume Apex Inc. made sales of $800…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 16PB: Use the following information relating to Medinas Company to calculate the inventory turnover ratio,...

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SP Company made sales of $32,750 million in 2019. The cost of goods sold for the year totaled $12,500 million. At the end of 2018, Malt's inventory stood at $1,300 million, and SP ended 2018 with an inventory of $1,800 million. Compute Malt's gross profit percentage and rate of inventory turnover for 2019.
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