Examining the recent financial statements of McLelland Clothing, Inc., you note the following: $754,693 Sales Cost of goods sold: Computed under FIFO Computed under LIFO Average inventory: Computed under FIFO Computed under LIFO Required: 529,400 552,400 Inuenton turnover ratio 76,900 45,800 1. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the FIFO inventory costing method. Gross profit ratio % Inventory turnover ratio Average days to sell inventory 2. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the LIFO inventory costing method. Gross profit ratio days %
Examining the recent financial statements of McLelland Clothing, Inc., you note the following: $754,693 Sales Cost of goods sold: Computed under FIFO Computed under LIFO Average inventory: Computed under FIFO Computed under LIFO Required: 529,400 552,400 Inuenton turnover ratio 76,900 45,800 1. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the FIFO inventory costing method. Gross profit ratio % Inventory turnover ratio Average days to sell inventory 2. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the LIFO inventory costing method. Gross profit ratio days %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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