Inigo Stores operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended February 1, 2019, the company reported average inventory of $2,478 (in millions) and an inventory turnover of 4.92. Average total fixed assets were $2,077 (million) and the fixed asset turnover ratio was 8.44. 1. Calculate Inigo Stores’s net sales and cost of goods sold. 2. Compute the gross profit percentage. 3. Is this an improvement from the gross profit percentage of 31.0 percent earned during the previous year?
Inigo Stores operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended February 1, 2019, the company reported average inventory of $2,478 (in millions) and an inventory turnover of 4.92. Average total fixed assets were $2,077 (million) and the fixed asset turnover ratio was 8.44. 1. Calculate Inigo Stores’s net sales and cost of goods sold. 2. Compute the gross profit percentage. 3. Is this an improvement from the gross profit percentage of 31.0 percent earned during the previous year?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 15BEA: Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000....
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Inigo Stores operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended February 1, 2019, the company reported average inventory of $2,478 (in millions) and an inventory turnover of 4.92. Average total fixed assets were $2,077 (million) and the fixed asset turnover ratio was 8.44.
1. Calculate Inigo Stores’s net sales and cost of goods sold.
2. Compute the gross profit percentage.
3. Is this an improvement from the gross profit percentage of 31.0 percent earned during the previous year?
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