Answer:
Gross profit is 60%
Inventory turnover is 4.6 times
Explanation:
The formula to compute the gross profit percentage is shown below:
= (Gross profit ÷ sales) × 100
where,
Gross profit = Sales - the cost of good sold
= $32,200 million ÷ $12,880 million
= $19,320 million
And, the sales is $32,200 million
Now put these values to the above formula
So, the percentage would equal to
= ($19,320 million) ÷ ($32,200 million) × 100
= 60%
The formula to compute the inventory turnover is shown below:
= (Cost of goods sold) ÷ average inventory
where,
Average inventory = (Beginning inventory + ending inventory) ÷ 2
= ($1,200 million + $1,600 million ) ÷ 2
= $900 million
And, the cost of good sold is $12,880 million
Now put these values to the above formula
So, the turnover would equal to
= $12,880 million ÷ $2,800 million
= 4.6 times
