Vitesse Semiconductor reported the following revenues and cost of goods sold for 2001-2003 (in thousands): 2003 2002 2001 $156,371. 73,163 $151,738 110,155 $383,905 201,536 Revenues Cost of revenues Calculate the gross margin ratio (gross margin/sales) for each year. In 2001 the firm took a charge for obsolete inventory of $46.5 million and, in 2002, another $30.5 million. Explain how these charges affect the gross margin ratio in cach of the three years.

Vitesse Semiconductor reported the following revenues and cost of goods sold for 2001-2003 (in thousands): 2003 2002 2001 $156,371. 73,163 $151,738 110,155 $383,905 201,536 Revenues Cost of revenues Calculate the gross margin ratio (gross margin/sales) for each year. In 2001 the firm took a charge for obsolete inventory of $46.5 million and, in 2002, another $30.5 million. Explain how these charges affect the gross margin ratio in cach of the three years.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 15EB: Tanke Company reported net income on the year-end financial statements of $850,200. However, errors...

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