Question

Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are located in the United States, predominantly in small towns in 24 midwestern and south eastern states. In the current year, the company reported average inventories of $ 1,668 million and an inventory turnover ratio of 8.0. Average total fixed assets were $ 2,098 million, and the fixed asset turnover ratio was 9.0. What amount did Dollar General report as gross profit in the current year?

Answer 1

Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are located in the United States, predominantly in small towns in 24 midwestern and south eastern states. In the current year, the company reported average inventories of $ 1,668 million and an inventory turnover ratio of 8.0.

Fixed assets turnover ratio = 9.04 Net sales / Avera.

This ratio divides net sales by net fixed assets, calculated over an annual period. The net fixed assets include the amount of property,

Using Fixed Assets turnover ratio, we can find the net sale

Fixed Assets turnover = Net sale/Average fixed assets

$ 2,098 Net sale/1218674000

Net sale is=$ 2,098 × 1218674000

Net Sales is=$ 9.140.055000

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