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Selected financial statement data for Schmitzer Inc. is shown below:2018 2017Balance sheet:Inventories 60,000 48,000Ratios:Gross profit ratio for 2018 40 %Inventory turnover ratio for 2018 5What was the amount of net sales for 2018?

Question

Selected financial statement data for Schmitzer Inc. is shown below:

2018 2017
Balance sheet:
Inventories 60,000 48,000
Ratios:
Gross profit ratio for 2018 40 %
Inventory turnover ratio for 2018 5

What was the amount of net sales for 2018?

check_circleAnswer
Step 1

The first step in above computation is to arrive at the amount of Average invevntory. The Average inventory is computed by making an average of Begnining and Ending inventory.

The average inventory has been computed as $ 54000 and the same has been computed as above.

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Tagged in

Business

Accounting

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