Calculate Gross Profit Ratio Given the Following Information: Accounts Receivable

question 328

Multiple Choice

Calculate gross profit ratio given the following information: accounts receivable = $3,500; inventory = $4,500; receivable turnover = 80 times; inventory turnover = 18 times.

• A) 70%
• B) 71%
• C) 72%
• D) 73%
• E) 74%

---

Definitions:

Tax Burden

The impact of taxes on an individual or entity, measured by the total amount of tax payments relative to income or profits.

Rate Structure

The system or scheme of pricing established for services and goods, including the way different charges or tariffs are applied.

Cigarette Supply

The total quantity of cigarettes that producers are willing and able to sell at a given price over a specific period.