Company made sales of $ 30000 million during 2014. Cost of goods sold for the ye

Question

Company made sales of $ 30000 million during 2014. Cost of goods sold for the year totaled $ 13800 million. At the end of 2013, Lemon Lime's inventory stood at $ 1200 million, and Lemon Lime ended 2014 with inventory of $ 1800 million.

Lemon Lime Company made sales of $30,000 lion during 2014. Cost af goods sold for the year totaled $13,800 million. At the end of 2013, Lemon Lime's inventory stood at $1,200 million, and Lemon Lime ended 2014 with inventory of $1,800 mllion. Compute Lemon Lime's gross profit percentage and rate of inventory tumover for 2014 Begin by computing Lemon Lime's gross prott percentage for 2014, (Round your answer to the nearest tenth of a percent, X.X%) Lemon Lime's gross profit percentage for 2014 is 54 % Now compute Lemon Lime's rate of inventory turnover for 2014. (Round your answer to one decimal place.) Lemon Limes rate of inventory turnover for 2014 is times.

Explanation / Answer

Gross profit percentage = (30000-13800)*100/30000 = 54%

Inventory turnover = Cost of goods sold/average inventory

Average inventory = (1200+1800/2) = 1500

Inventory turnover = 13800/1500 = 9.2 times

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