The following information was taken from the accounting records of Indigo Ltd. and Cullumber Ltd. at October 31, 2024. The two companies are competitors. Indigo Ltd. Cullumber Ltd. Ending inventory, Oct. 31, 2023 $384,000 $148,000 Ending inventory, Oct. 31, 2024 307,000 477,000 Cost of goods sold, 2024 6,219,000 4,968,750 Sales for 2024 8,292,000 8,281,250 G (a) Calculate the gross margin, gross margin ratio, and inventory turnover ratio at October 31, 2024, for: i. Indigo Ltd. ii. Cullumber Ltd. (Round gross margin ratio and inventory turnover ratio to 1 decimal place, e.g. 15.2% or 10.1.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information was taken from the accounting records of Indigo Ltd. and Cullumber Ltd. at October 31, 2024. The two
companies are competitors.
Indigo Ltd.
Cullumber Ltd.
Ending inventory, Oct. 31, 2023
$384,000
$148,000
Ending inventory, Oct. 31, 2024
307,000
477,000
Cost of goods sold, 2024
6,219,000
4,968,750
Sales for 2024
8,292,000
8,281,250
G
(a)
Calculate the gross margin, gross margin ratio, and inventory turnover ratio at October 31, 2024, for:
i. Indigo Ltd.
ii. Cullumber Ltd.
(Round gross margin ratio and inventory turnover ratio to 1 decimal place, e.g. 15.2% or 10.1.)
Transcribed Image Text:The following information was taken from the accounting records of Indigo Ltd. and Cullumber Ltd. at October 31, 2024. The two companies are competitors. Indigo Ltd. Cullumber Ltd. Ending inventory, Oct. 31, 2023 $384,000 $148,000 Ending inventory, Oct. 31, 2024 307,000 477,000 Cost of goods sold, 2024 6,219,000 4,968,750 Sales for 2024 8,292,000 8,281,250 G (a) Calculate the gross margin, gross margin ratio, and inventory turnover ratio at October 31, 2024, for: i. Indigo Ltd. ii. Cullumber Ltd. (Round gross margin ratio and inventory turnover ratio to 1 decimal place, e.g. 15.2% or 10.1.)
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