Please help me solve A-J! I would so appreciate it so i can solve the other 9 pr

Question

Please help me solve A-J! I would so appreciate it so i can solve the other 9 problems of my homework! Thank you
issues and problems that merit front-burner management attention. Like good industry analysis, solid analysis of the company's competitive situation vis- à-vis its key rivals is a valuable precondition for good strategy making ASSURANCE OF LEARNING EXERCISES connect 1. Using the financial ratios provided in Table 4.1 and the financial statement infor- mation presented below for Costco Wholesale Corporation, calculate the follow- ing ratios for Costco for both 2013 and 2014: a. Gross profit margin b. Operating profit margin c. Net profit margin d. Times-interest-earned (or coverage) ratio e. Return on stockholders' equity f. Return on assets g. Debt-to-equity ratio h. Days of inventory i. Inventory turnover ratio j. Average collection period Based on these ratios, did Costco's financial performance improve, weaken, or remain about the same from 2013 to 2014? LO1

Explanation / Answer

As per rules I am solving the first 4 subparts of the question

A:Gross profit ratio= Gross profit/ Sales

2013

Gross profit ratio = (105156-91948)/105156= 12.56%

2014

Gross profit ratio= (112640-98458)/112640= 12.59%

B: Operating profit ratio= Operating profit/ Sales

2013

Operating profit ratio= 3053/105156= 2.90%

2014

Operating profit ratio= 3220/112640= 2.86%

C:Net profit margin= Net profit/ Sales

2013

Net profit margin= 2039/105156= 1.94%

2014

Net profit margin = 2058/112640= 1.83%

D:Times Interest earned ratio= EBIT/Interest

2013

3053/99= 30.84

2014

3220/113= 28.5

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