Question

Find the operating ratio for Washington Retailers if the annual

cost of goods sold is ​$261,830​, the operating expenses are
​$43,751​, and the net sales are ​$439,307.

Answer 1

The operating ratio for Washington Retailers is 69.57%, calculated by adding the cost of goods sold and operating expenses, dividing by net sales, and then multiplying by 100.

Step-by-step explanation:

To calculate the operating ratio for Washington Retailers, we need to use the formula:

Operating Ratio = (Cost of Goods Sold + Operating Expenses) / Net Sales * 100

First, we add the annual cost of goods sold to the operating expenses:

$261,830 (Cost of Goods Sold) + $43,751 (Operating Expenses) = $305,581

Next, we divide this sum by the net sales and then multiply by 100 to get the percentage:

$305,581 / $439,307 = 0.6957

0.6957 * 100 = 69.57%

Thus, the operating ratio for Washington Retailers is 69.57%.