Calculate the gross profit ratio and inventory turnover ratio. (LO 6)
The following information is from the financial statements of Afua’s International Pasta Corporation.
|
For year ended (amounts in thousands) |
June 30,2 009 |
June3 0,2 008 |
June3 0,2 007 |
|
Sales( domestic) |
$416,049 |
$429,813 |
$44s,849 |
|
Cost of sales |
92,488 |
98,717 |
110,632 |
|
Inventory |
17,030 |
16,341 |
12,659 |
Required
a. Calculate the gross profit ratio for the last 2 years shown.
b. Calculate the inventory turnover ratio for the last 2 years shown.
c. What information do these comparisons provide?