Margaret Company reported the following information for the current year: Net sales Purchases Beginning Inventory Ending Inventory Cost of Goods Sold Industry Averages available are: Inventory Turnover Gross Profit Percentage $3,000,000 $1,763,000 $235,000 $105,000 45% of sales 5.29 28% How do the inventory turnover and gross profit percentage for Margaret Company compare to the industry averages for the same ratios? (Round inventory turnover to two decimal places Round gross profit percentage to the nearest percent) O A. Margaret Company has inferior gross profit percentage and superior inventory turnover. O B. Margaret Company has superior gross profit percentage and inventory turnover. O C. Margaret Company has inferior gross profit percentage and inventory turnover. O D. Margaret Company has superior gross profit percentage and inferior inventory turnover.
Margaret Company reported the following information for the current year: Net sales Purchases Beginning Inventory Ending Inventory Cost of Goods Sold Industry Averages available are: Inventory Turnover Gross Profit Percentage $3,000,000 $1,763,000 $235,000 $105,000 45% of sales 5.29 28% How do the inventory turnover and gross profit percentage for Margaret Company compare to the industry averages for the same ratios? (Round inventory turnover to two decimal places Round gross profit percentage to the nearest percent) O A. Margaret Company has inferior gross profit percentage and superior inventory turnover. O B. Margaret Company has superior gross profit percentage and inventory turnover. O C. Margaret Company has inferior gross profit percentage and inventory turnover. O D. Margaret Company has superior gross profit percentage and inferior inventory turnover.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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![Margaret Company reported the following information for the current year:
Net sales
$3,000,000
Purchases
$1,763,000
Beginning Inventory
$235,000
Ending Inventory
$105,000
Cost of Goods Sold
45% of sales
Industry Averages available are:
Inventory Turnover
Gross Profit Percentage
5.29
28%
How do the inventory turnover and gross profit percentage for Margaret Company compare to the industry averages for the same ratios? (Round inventory turnover to
two decimal places Round gross profit percentage to the nearest percent
O A. Margaret Company has inferior gross profit percentage and superior inventory turnover.
O B. Margaret Company has superior gross profit percentage and inventory turnover.
O C. Margaret Company has inferior gross profit percentage and inventory turnover.
O D. Margaret Company has superior gross profit percentage and inferior inventory turnover.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffffe8292-80aa-49e9-946e-fce4d64339f6%2F718bf096-3f5b-4df9-a682-21cc8657c9d5%2Fktnv0b_processed.png&w=3840&q=75)
Transcribed Image Text:Margaret Company reported the following information for the current year:
Net sales
$3,000,000
Purchases
$1,763,000
Beginning Inventory
$235,000
Ending Inventory
$105,000
Cost of Goods Sold
45% of sales
Industry Averages available are:
Inventory Turnover
Gross Profit Percentage
5.29
28%
How do the inventory turnover and gross profit percentage for Margaret Company compare to the industry averages for the same ratios? (Round inventory turnover to
two decimal places Round gross profit percentage to the nearest percent
O A. Margaret Company has inferior gross profit percentage and superior inventory turnover.
O B. Margaret Company has superior gross profit percentage and inventory turnover.
O C. Margaret Company has inferior gross profit percentage and inventory turnover.
O D. Margaret Company has superior gross profit percentage and inferior inventory turnover.
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