Margaret Company reported the following information for the current year: Net sales Purchases Beginning Inventory Ending Inventory Cost of Goods Sold $3,000,000 $1,763,000 $235,000 $105,000 45% of sales Industry Averages available are: Inventory Turnover Gross Profit Percentage How do the inventory turnover and gross profit percentage for Margaret Company compare to the industry averages for the same ratios? (Round inventory turnover to two decimal places. Round gross profit percentage to the nearest percent.) 5.29 28% A. Margaret Company has inferior gross profit percentage and superior inventory turnover. O B. Margaret Company has superior gross profit percentage and inventory turnover. O C. Margaret Company has inferior gross profit percentage and inventory turnover. D. Margaret Company has superior gross profit percentage and inferior inventory turnover.

Margaret Company reported the following information for the current year: Net sales Purchases Beginning Inventory Ending Inventory Cost of Goods Sold $3,000,000 $1,763,000 $235,000 $105,000 45% of sales Industry Averages available are: Inventory Turnover Gross Profit Percentage How do the inventory turnover and gross profit percentage for Margaret Company compare to the industry averages for the same ratios? (Round inventory turnover to two decimal places. Round gross profit percentage to the nearest percent.) 5.29 28% A. Margaret Company has inferior gross profit percentage and superior inventory turnover. O B. Margaret Company has superior gross profit percentage and inventory turnover. O C. Margaret Company has inferior gross profit percentage and inventory turnover. D. Margaret Company has superior gross profit percentage and inferior inventory turnover.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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