please answer the following questions and if possible explain how it was solved.

Question

please answer the following questions and if possible explain how it was solved.

3. Hanover Shoes' sales totaled $8,000,000 for 2013. Information concerning Hanover's gross profit under three inventory costing methods follows: FIFO LIFO Weighted average 900,000 $970,000 $920,000 Compute the gross profit percentage for each costing method. Which method shows the highest gross profit? 6. The following data are excerpted from Williams Co.'s 2013 financial statements: 201 201 Cash & cash equivalents S 2,087 $ 443 Accounts receivable, net 2,496 2,527 6,789 7,249 Other current assets $12,049 2013 S63,335 45,722 $17,613 $10 433 2012 $59,034 42,391 $16,643 Total current assets Net sales Cost of sales Gross profit Williams' inventory footnote follows: Inventories are valued on a lower of last-in, first-out (LIFO) cost or market basis. At August 31, 2013 and 2012, inventories would have been greater by $1,239 million and $1,067 million, respectively, if they had been valued on a lower of first-in, first-out (FIFO) cost or market basis. Inventory includes product cost, inbound freight, warehousing costs and vendor allowances that are not included as a reduction of advertising expense. a. Compute the inventory turnover ratios for 2013 and 2012 (ending inventory in 2011 is S6,791). What does this say about the company? b. Is it correct to include in-bound freight in Williams' inventory cost? Why or why not?

Explanation / Answer

Hi as per Chegg Policy , I am only answering the first question. Please post rest questions seperately.

3. Gross Profit Percentage= (Gross Profit/Sales)* 100

FIFO - (900,000/8,000,000)*100 = 11.25%

LIFO - (970,000/8,000,000)*100 = 12.125%

Weighted average - (920,000/8,000,000)*100 = 11.5%

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