Gross profit is the profit an organization makes in the wake of deducting the expenses related with making and selling its items, or the expenses related with giving its administrations. Gross profit will show up on an organization’s pay explanation and can be determined by subtracting the expense of merchandise sold. The inventory turnover ratio is a proficiency ratio that indicates how viably inventory is overseen by contrasting expense of products sold and normal inventory for a period. This estimates how often normal inventory is "turned" or sold amid a period. To compute: Compute the gross profit (rounded to one decimal place) and inventory turnover (rounded to two decimal places) ratios for 2016. What do these ratios tell you?

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Answer 1

Question

Chapter 6, Problem 80.4C

To determine

Gross profit is the profit an organization makes in the wake of deducting the expenses related with making and selling its items, or the expenses related with giving its administrations. Gross profit will show up on an organization’s pay explanation and can be determined by subtracting the expense of merchandise sold.

The inventory turnover ratio is a proficiency ratio that indicates how viably inventory is overseen by contrasting expense of products sold and normal inventory for a period. This estimates how often normal inventory is "turned" or sold amid a period.

To compute:

Compute the gross profit (rounded to one decimal place) and inventory turnover (rounded to two decimal places) ratios for 2016. What do these ratios tell you?

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Answer 2

Question

Chapter 6, Problem 80.4C

To determine

Gross profit is the profit an organization makes in the wake of deducting the expenses related with making and selling its items, or the expenses related with giving its administrations. Gross profit will show up on an organization’s pay explanation and can be determined by subtracting the expense of merchandise sold.

The inventory turnover ratio is a proficiency ratio that indicates how viably inventory is overseen by contrasting expense of products sold and normal inventory for a period. This estimates how often normal inventory is "turned" or sold amid a period.

To compute:

Compute the gross profit (rounded to one decimal place) and inventory turnover (rounded to two decimal places) ratios for 2016. What do these ratios tell you?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 80.4C

To determine

Gross profit is the profit an organization makes in the wake of deducting the expenses related with making and selling its items, or the expenses related with giving its administrations. Gross profit will show up on an organization’s pay explanation and can be determined by subtracting the expense of merchandise sold.

The inventory turnover ratio is a proficiency ratio that indicates how viably inventory is overseen by contrasting expense of products sold and normal inventory for a period. This estimates how often normal inventory is "turned" or sold amid a period.

To compute:

Compute the gross profit (rounded to one decimal place) and inventory turnover (rounded to two decimal places) ratios for 2016. What do these ratios tell you?

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 80.4C

To determine

Gross profit is the profit an organization makes in the wake of deducting the expenses related with making and selling its items, or the expenses related with giving its administrations. Gross profit will show up on an organization’s pay explanation and can be determined by subtracting the expense of merchandise sold.

The inventory turnover ratio is a proficiency ratio that indicates how viably inventory is overseen by contrasting expense of products sold and normal inventory for a period. This estimates how often normal inventory is "turned" or sold amid a period.

To compute:

Compute the gross profit (rounded to one decimal place) and inventory turnover (rounded to two decimal places) ratios for 2016. What do these ratios tell you?

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 80.4C

To determine

Gross profit is the profit an organization makes in the wake of deducting the expenses related with making and selling its items, or the expenses related with giving its administrations. Gross profit will show up on an organization’s pay explanation and can be determined by subtracting the expense of merchandise sold.

The inventory turnover ratio is a proficiency ratio that indicates how viably inventory is overseen by contrasting expense of products sold and normal inventory for a period. This estimates how often normal inventory is "turned" or sold amid a period.

To compute:

Compute the gross profit (rounded to one decimal place) and inventory turnover (rounded to two decimal places) ratios for 2016. What do these ratios tell you?

Answer 6

Chapter 6, Problem 80.4C

To determine

Gross profit is the profit an organization makes in the wake of deducting the expenses related with making and selling its items, or the expenses related with giving its administrations. Gross profit will show up on an organization’s pay explanation and can be determined by subtracting the expense of merchandise sold.

The inventory turnover ratio is a proficiency ratio that indicates how viably inventory is overseen by contrasting expense of products sold and normal inventory for a period. This estimates how often normal inventory is "turned" or sold amid a period.

To compute:

Compute the gross profit (rounded to one decimal place) and inventory turnover (rounded to two decimal places) ratios for 2016. What do these ratios tell you?

Answer 7

Chapter 6, Problem 80.4C

To determine

Gross profit is the profit an organization makes in the wake of deducting the expenses related with making and selling its items, or the expenses related with giving its administrations. Gross profit will show up on an organization’s pay explanation and can be determined by subtracting the expense of merchandise sold.

The inventory turnover ratio is a proficiency ratio that indicates how viably inventory is overseen by contrasting expense of products sold and normal inventory for a period. This estimates how often normal inventory is "turned" or sold amid a period.

To compute:

Compute the gross profit (rounded to one decimal place) and inventory turnover (rounded to two decimal places) ratios for 2016. What do these ratios tell you?

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 6 - Prob. 1DQ Ch. 6 - Describe the types of inventories used by...Ch. 6 - Compare the flow of inventory costs between...Ch. 6 - What are the components of cost of goods available...Ch. 6 - How is cost of goods sold determined?Ch. 6 - How do the perpetual and periodic inventory...Ch. 6 - Why are perpetual inventory systems more expensive...Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

Solution Summary: The author explains the gross profit and inventory turnover ratios for 2016. Gross profit shows up on an organization's pay explanation and can be determined by subtracting the expense of merchandise sold.

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