[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 statement Sales Revenue Cost of Goods Sold Gross Profit From the balance sheet Inventories Last Year This Year Next Year $ 560,000 346,500 213,500 $615,000 405,250 209,750 $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? Complete this question by entering your answers in the tabs below. Gross profit percentage this year Gross profit percentage next year Is the gross profit percentage expected to improve or worsen next year? Required 1 Required 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? (Round your answers to 2 decimal places) %
[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 statement Sales Revenue Cost of Goods Sold Gross Profit From the balance sheet Inventories Last Year This Year Next Year $ 560,000 346,500 213,500 $615,000 405,250 209,750 $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? Complete this question by entering your answers in the tabs below. Gross profit percentage this year Gross profit percentage next year Is the gross profit percentage expected to improve or worsen next year? Required 1 Required 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? (Round your answers to 2 decimal places) %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[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 statement
Sales Revenue
Cost of Goods Sold
Gross Profit
From the balance sheet
Inventories
Last Year This Year Next Year
$ 560,000 $ 615,000
346,500
405,250
213,500
209,750
$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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 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? (Round your
answers to 2 decimal places)
Gross profit percentage this year
Gross profit percentage next year
Is the gross profit percentage expected to improve or worsen next year?
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F859e9511-f592-4bf6-8611-cfb7b4e3b661%2Fc4ee4cd0-ffd1-40c5-8562-f82ab25ba92f%2F0gf7mg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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 statement
Sales Revenue
Cost of Goods Sold
Gross Profit
From the balance sheet
Inventories
Last Year This Year Next Year
$ 560,000 $ 615,000
346,500
405,250
213,500
209,750
$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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 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? (Round your
answers to 2 decimal places)
Gross profit percentage this year
Gross profit percentage next year
Is the gross profit percentage expected to improve or worsen next year?
%
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