Gross Profit Rate: It is the financial ratio that evaluates the money left out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross profit on sales and net sales. Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale. The gross profit rate for November month.

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Chapter 6, Problem 6.18E

(a)

To determine

Gross Profit Rate: It is the financial ratio that evaluates the money left out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross profit on sales and net sales.

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

The gross profit rate for November month.

(b)

To determine

The estimated cost of inventory lost in the fire.

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