Selected Financial Statement Data from Western Colorado Stores Is Shown

Essay

Selected financial statement data from Western Colorado Stores is shown below.
Required:
1. Compute the gross profit ratio for 2009.
2. Compute the inventory turnover ratio for 2009.
$\begin{array}{lrr}&2009&2008\\\text { Net sales } & \$ 625,000 & \$ 690,000 \\\text { Cost of goods sold } & 500,000 & 490,000 \\\text { Operating expenses } & 105,000 & 85,000 \\\text { Inventory } & 90,000 & 70,000\end{array}$