The Intramural Sports Club reports sales revenue of $892,000. Inventory at both the beginning and end of the year totals $160,000. The inventory turnover ratio for the year is 4.6. What amount of gross profit does the company report in its income statement?

The profit a company makes after deducting all costs associated with creating and selling its products or services is known as gross profit.

Gross Profit=Sales Revenue-Cost of Goods Sold

Cost of Goods sold can be expressed as follows:

COGS = Beginning Inventory + Purchases – Ending Inventory

They didn’t tell you what your purchases were, however they stated the inventory turned over 4.6 times.

However, Beginning and Ending inventory are the same, so $ 160,000 times 4.6 would be how much inventory was purchased during the year.

=160,000 x 4.6 = 736,000

=892,000 – 736,000 = 156,000

Hence, Gross Profit=$156,000

To know more about gross profit, refer to the link:

link

$524,000

Explanation:

Gross profit = revenue - costs of goods sold

For the Intramural Sports Club, revenue = $892,000.

Finding the cost of goods sold  COGS

Inventory turnover = COGS/ average inventory

inventory turnover=4.6

Average inventory = beginning plus closing inventory /2

in this case, average inventory =$160,000/2

=$80,000

Therefor, 4.6 = COGS/ $80,000

COGS = $80,000 x 4.6

COGS =$368,000

Gross profits= $892,000- $368,000

Gross profit =$524,000

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer///supply is elastic, and demand is inelastic;