Please do not give solution in image format thanku Required:1. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnoverratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-dayyear and round to two decimal places) using the FIFO inventory costing method.Gross profit ratioInventory turnover ratioAverage days to sell inventorydays2. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnoverratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-dayyear and round to two decimal places) using the LIFO inventory costing method.Gross profit ratioInventory turnover ratioAverage days to sell inventory3. Conceptual Connection: Which ratios-the ones computed using FIFO or LIFO inventory values-provide the better indicator of how successful McLelland was at managing and controlling its inventory?%%days. Examining the recent financial statements of McLelland Clothing, Inc., you note the following:$754,693SalesCost of goods sold:Computed under FIFOComputed under LIFOAverage inventory:Computed under FIFOComputed under LIFO529,400552,400Inventani turnover eatin76,90045,800Required:1. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnoverratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-dayyear and round to two decimal places) using the FIFO inventory costing method.Gross profit ratioInventory turnover ratioAverage days to sell inventorydays2. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnoverratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-dayyear and round to two decimal places) using the LIFO inventory costing method.Gross profit ratio%%

Ratio Analysis Is a Method Of Analysis Of The Company's Liquidity, Profitability By Comparing The…

Examining the recent financial statements of McLelland Clothing, Inc., you note the following: $754,693 Sales Cost of goods sold: Computed under FIFO Computed under LIFO Average inventory: Computed under FIFO Computed under LIFO Required: 529,400 552,400 Inuenton turnover ratio 76,900 45,800 1. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the FIFO inventory costing method. Gross profit ratio % Inventory turnover ratio Average days to sell inventory 2. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the LIFO inventory costing method. Gross profit ratio days %

Examining the recent financial statements of McLelland Clothing, Inc., you note the following: $754,693 Sales Cost of goods sold: Computed under FIFO Computed under LIFO Average inventory: Computed under FIFO Computed under LIFO Required: 529,400 552,400 Inuenton turnover ratio 76,900 45,800 1. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the FIFO inventory costing method. Gross profit ratio % Inventory turnover ratio Average days to sell inventory 2. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the LIFO inventory costing method. Gross profit ratio days %

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 58E: Analyzing Inventory The recent financial statements of McLelland Clothing Inc. include the following...

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