Pound General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are located in the United States, predominantly in small towns in midwestern and southeastern states. In a recent year, the company reported average inventories of $1,476 million and an inventory turnover ratio of 5.0. Average total fixed assets were $1,315 million, and the fixed asset turnover ratio was 9.0. What amount did Pound General report as gross profit in the current year? Note: Round your intermediate calculations to the nearest million. Gross profit million
Pound General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are located in the United States, predominantly in small towns in midwestern and southeastern states. In a recent year, the company reported average inventories of $1,476 million and an inventory turnover ratio of 5.0. Average total fixed assets were $1,315 million, and the fixed asset turnover ratio was 9.0. What amount did Pound General report as gross profit in the current year? Note: Round your intermediate calculations to the nearest million. Gross profit million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Pound General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are located
in the United States, predominantly in small towns in midwestern and southeastern states. In a recent year, the company reported
average inventories of $1,476 million and an inventory turnover ratio of 5.0. Average total fixed assets were $1,315 million, and the fixed
asset turnover ratio was 9.0.
What amount did Pound General report as gross profit in the current year?
Note: Round your intermediate calculations to the nearest million.
Gross profit
million
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