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?

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.

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