!Required information[The following information applies to the questions displayed below.]The Slumber Store (TSS) is a national wholesaler of beds, mattresses, pillows, and sheets.Key totals from TSS's most recent and forecasted financial statements are presented in the table below.From the income statementSales RevenueCost of Goods SoldGross ProfitFrom the balance sheetInventoriesLast Year$ 560,000346,500213,500This Year$ 615,000405, 250209,750Last Year This Year$ 88,000 $ 101,808Next Year$ 770,000556,300213,700Next Year$ 179,825Required:1. Use the financial statement totals to compute the company's actual inventory turnover ratio for this year and its forecasted inventoryturnover ratio for next year. Also compute the days-to-sell for this year (actual) and next year (forecasted). Is inventory turnoverexpected to improve or worsen next year?2. Use the financial statement totals to compute the company's actual gross profit percentage for this year and its forecasted grossprofit percentage for next year. Is the gross profit percentage expected to improve or worsen next year?

Inventory Turnover Ratio – This ratio suggests how quickly a company sells and replaces its…

Required information [The following information applies to the questions displayed below.] The Slumber Store (TSS) is a national wholesaler of beds, mattresses, pillows, and sheets. Key totals from TSS's most recent and forecasted financial statements are presented in the table below. Last Year $ 560,000 346,500 213,500 From the income statement Sales Revenue Cost of Goods Sold Gross Profit From the balance sheet Inventories This Year $ 615,000 405,250 209,750 Next Year $ 770,000 556,300 213,700 Last Year This Year Next Year $ 88,000 $ 101,808 $ 179,825 Required: 1. Use the financial statement totals to compute the company's actual inventory turnover ratio for this year and its forecasted inventory turnover ratio for next year. Also compute the days-to-sell for this year (actual) and next year (forecasted). Is inventory turnover expected to improve or worsen next year? 2. Use the financial statement totals to compute the company's actual gross profit percentage for this year and its forecasted gross profit percentage for next year. Is the gross profit percentage expected to improve or worsen next year?

Required information [The following information applies to the questions displayed below.] The Slumber Store (TSS) is a national wholesaler of beds, mattresses, pillows, and sheets. Key totals from TSS's most recent and forecasted financial statements are presented in the table below. Last Year $ 560,000 346,500 213,500 From the income statement Sales Revenue Cost of Goods Sold Gross Profit From the balance sheet Inventories This Year $ 615,000 405,250 209,750 Next Year $ 770,000 556,300 213,700 Last Year This Year Next Year $ 88,000 $ 101,808 $ 179,825 Required: 1. Use the financial statement totals to compute the company's actual inventory turnover ratio for this year and its forecasted inventory turnover ratio for next year. Also compute the days-to-sell for this year (actual) and next year (forecasted). Is inventory turnover expected to improve or worsen next year? 2. Use the financial statement totals to compute the company's actual gross profit percentage for this year and its forecasted gross profit percentage for next year. Is the gross profit percentage expected to improve or worsen next year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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