Question

Anthony corporation reported the following amounts for the year: net sales$296,000 cost of goods sold 138,000 average inventory 50,000 anthony's gross profit ratio is?

Answer 1

In the given question GP ratio will be 53.4%

Here Net sales= 296000 $

Cost of goods sold= 138000 $

average inventory= 50000 $

Gross profit= Net sales- Cost of goods sold

                    =296000-138000

                     =158000

Formula for calculating Gross profit ratio is:

Gross profit/ Net sales *100

= 158000/296000*100

=53.4%

Gross profit ratio is a financial ratio which measures the performance and efficiency of a business by dividing its gross profit  by the total net sales. The gross profit ratio can also be expressed in  the form of percentage by multiplying the result by 100.

To know more about GP ratio here:

brainly.com/question/22718027

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