Fill in the blank and answer the questions for both companies. Both companies have a tax rate of 30%.
Luthor Industries – FY 2012
Net Sales: $49,530
Beginning Inventory: $10,401
Net Purchases: _____
Ending Inventory: $11,901
Cost of Goods Sold: ______
Gross Profit: $7,939
Operating Expenses: _____
Income from Operations (IBIT): $2,300
Income Tax Expense: _____
Net Income (or Loss): _____
Wayne Enterprises – FY 2012
Net Sales: _____
Beginning Inventory: $7,239
Net Purchases: $43,434
Ending Inventory: _____
Cost of Goods Sold: $42,934
Gross Profit: _____
Operating Expenses: 9,000
Income from Operations (IBIT): 7,500
Income Tax Expense: _____
Net Income (or Loss): _____
1. Find the Gross Profit Percentage of Wayne Enterprises for FY 2012.
2. Find the Inventory Turnover for Luthor Industries for FY 2012.
3. Find the Days Sales in Inventory for Luthor Industries for FY 2012.