Thompson tv and appliance reported the following in its 2016 financial statements: 2016 sales $420,000 cost of goods sold: inventory, january 1 82,000 net purchases 340,000 goods available for sale 422,000 inventory, december 31 86,000 cost of goods sold 336,000 gross profit $ 84,000 thompson's 2016 gross profit ratio is:

a. 20%.
b. 25%.
c. 19%.
d. none of these is correct.

gross profit ratio =  20%

so correct option is A. 20%

Explanation:

given data

Sales= $420,000

Inventory = 82,000

Net purchases = 340,000

Goods available for sale = 422,000

Inventory  = 86,000

Cost of goods sold = 336,000

Gross profit = $84,000

to find out

gross profit ratio

solution

we get here gross profit ratio that is express as

gross profit ratio = Gross profit ÷ Sales    ..................1

put here value we get

gross profit ratio =

solve we get

gross profit ratio =  20%

so correct option is A. 20%

answeraggressive behavior tactics include all of the above;