The following information is available for Splish Brothers Inc. for three recent fiscal years. 2022 2021 2020 Inventory $580,000 $590,000 $320,000 Net sales 1,950,000 1,750,000 1,350,000 Cost of goods sold 1,462,500 1,228,500 938,000 Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.)
The following information is available for Splish Brothers Inc. for three recent fiscal years. 2022 2021 2020 Inventory $580,000 $590,000 $320,000 Net sales 1,950,000 1,750,000 1,350,000 Cost of goods sold 1,462,500 1,228,500 938,000 Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is available for Splish Brothers Inc. for three recent fiscal years.
|
2022
|
2021
|
2020
|
||||
|---|---|---|---|---|---|---|
|
Inventory
|
$580,000 | $590,000 | $320,000 | |||
|
Net sales
|
1,950,000 | 1,750,000 | 1,350,000 | |||
|
Cost of goods sold
|
1,462,500 | 1,228,500 | 938,000 |
Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.)
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