45 - profit method Estimating Inventory by the Gross Profit...

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Use gross profit percentage and inventory turnover to evaluate operations Gross Profit Percentage Key indicator of ability to sell inventory at a profit Sales – Cost of Goods Sold = Gross profit Inventory Turnover How many times a company sells its average level of inventory Compute average inventory Inventory turnover Estimate inventory by the gross
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Unformatted text preview: profit method Estimating Inventory by the Gross Profit Method Cost of goods sold computation - periodic Beginning Inventory + Purchases = Goods available- Ending inventory = Cost of Goods sold Gross profit method Beginning Inventory + Purchases = Goods available- Cost of Goods sold = Ending inventory...
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