Given the following information, analyze XYZ Company's gross margin ratio.

Given the following:s information calculate the acid-test ratio for X'fZ Company:
Cash                                              $ 8,000
$10,000
$12,000
$40,000
$22,000
$28,000
Short-term investments
Current receivables
Total current assets
Total current liabilities
Total liabilities

1.82
.55
1.36




Name the temporary accounts used to record the costs of merchandise purchased in a periodic

inventory system. (Check all that apply.)

Purchase discounts
Merchandise inventory
Purchases
Transportation-in
Damaged purchases
Cost of goods sold

Purchase returns and allowances 


Given the following information, analyze XYZ Company's gross margin ratio. (Check all that apply.)
Year2014 2013
Gross margin $3,200 $3,210
Net sales $10,400 $11,200
Gross margin ratio 30.7% 28.7%

In 2014, they have approximately 30.7 cents of every dollar of sales to help cover the
other expenses of running the business.
Their gross margin ratio has improved since 2013.
Their gross margin has decreased since last year. 

They are not making any profit on the sales of their merchandise.