"Toys 4 U" Has Reported the Following Information on Their

Essay

"Toys 4 U" has reported the following information on their income statements for the years 20X3 through 20X7: $$\begin{array} { | l | r | r | r | r | r | } \hline & \underline { \mathbf { 2 0 X 7 } } & \underline { \mathbf { 2 0 X 6 } } & \mathbf { 2 0 X 5 } & \underline { \mathbf { 2 0 X 4 } } & \mathbf { 2 0 X 3 } \\\hline \text { Net Sales } & \$ 11,170 & \$ 11,038 & \$ 9,932 & \$ 9,427 & \$ 8,746 \\\hline \begin{array} { l } \text { Cost of Goods } \\\text { Sold }\end{array} & 8,191 & 7,710 & 6,892 & 6,592 & 6,008 \\\hline\end{array}$$ 1. Compute the gross profit percentage for
a. 20X7 ___________
b. 20X6 ___________
c. 20X5 ___________
d. 20X4 ___________
e. 20X3 ___________
2. Has the gross profit ratio for "Toys 4 U" improved over time or worsened? Explain your reason.