Chapter 17, Problem S17.11SE

To determine

Inventory Turnover Ratio: It is a part of efficiency ratios used during the process of ratio analysis. It reflects the number of times a company’s inventory is converted into sale during a particular period. The cost of goods sold is divided by average inventory to get the value of inventory turnover.

Profit Margin Ratio: Profit margin ratio reflects the portion of net income in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue.

Income Statement: Income statement as part of financial statements is included in the annual report of a company, prepared at the end of an accounting period. It reports the expenses and income of a business.

To Complete: The income statement of O Company.