Truman Co. sells a large number of common household items, while Stapleton sells a small number of expensive items. The two companies report the same dollar amount for ending inventory and gross profit for the year. Which of the following is most likely true?
A Truman has a higher inventory turnover ratio, and Stapleton has a lower gross profit ratio.
B Stapleton has a higher inventory turnover ratio and higher gross profit ratio.
C Truman has a higher inventory turnover ratio and higher gross profit ratio.
D Truman has a higher inventory turnover ratio, and Stapleton has a higher gross profit ratio.
Answers: 2
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Truman Co. sells a large number of common household items, while Stapleton sells a small number of e...
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