Sheridan Inc. has sales of $2,300,000, a gross profit margin of 32.0 percent, and inventory of $850,000. What are the company's inventory turnover ratio and days' sales in inventory? (Round inventory turnover ratio to 3 decimal places, e.g. 12.555 and days' sales in inventory to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Inventory turnover ratio Days' sales in inventory times days
Sheridan Inc. has sales of $2,300,000, a gross profit margin of 32.0 percent, and inventory of $850,000. What are the company's inventory turnover ratio and days' sales in inventory? (Round inventory turnover ratio to 3 decimal places, e.g. 12.555 and days' sales in inventory to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Inventory turnover ratio Days' sales in inventory times days
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:Sheridan Inc. has sales of $2,300,000, a gross profit margin of 32.0 percent, and inventory of $850,000. What are the company's
inventory turnover ratio and days' sales in inventory? (Round inventory turnover ratio to 3 decimal places, e.g. 12.555 and days' sales in
inventory to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)
Inventory turnover ratio
Days' sales in inventory
eTextbook and Modin
times
days
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