Brief Exercise 6-16 Calculate inventory ratios (LO6-7)Use the following information:Net sales$150,000Cost of goods soldBeginning inventoryEnding inventory100, 00035,00025,000a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.)Inventory turnover ratiotimesb. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1decimal place.)Average days in inventory| daysc. Calculate the gross profit ratio. (Round your answer to 2 decimal place.)Gross profit ratio%

Solution Formula used Inventory turnover ratio = cost of goods sold/ average inventory…

Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.) inventory turnover ratio times . Calculate the average days in inventory. (Assume 365 days in a year. Round your intermedi ecimal place.) Average days in inventory days

Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.) inventory turnover ratio times . Calculate the average days in inventory. (Assume 365 days in a year. Round your intermedi ecimal place.) Average days in inventory days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Brief Exercise 6-16 Calculate inventory ratios (LO6-7)
Use the following information:
Net sales
$150,000
Cost of goods sold
Beginning inventory
Ending inventory
100, 000
35,000
25,000
a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.)
Inventory turnover ratio
times
b. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1
decimal place.)
Average days in inventory
| days
c. Calculate the gross profit ratio. (Round your answer to 2 decimal place.)
Gross profit ratio
%

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