Gross Profit Ratio
Dexter Inc. recorded net sales of $50,000 during the period, and its cost of goods sold amounted to $30,000. Compute the company's gross profit ratio.
Brief Exercise 5-5 Valuation of Inventory and Measurement of Income Baxter operates a chain of electronics stores and buys its products from a number of different manufacturers around the world. Give at least three examples of costs that Baxter might incur that should be added to the purchase price of its inventory.