Use the following information: Net sales $ 205,000 Cost of goods sold 144,000 Beginning inventory 46,000 Ending inventory 36,000 a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.) b. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) c. Calculate the gross profit ratio. (Round your answer to 2 decimal place.)
Use the following information: Net sales $ 205,000 Cost of goods sold 144,000 Beginning inventory 46,000 Ending inventory 36,000 a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.) b. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) c. Calculate the gross profit ratio. (Round your answer to 2 decimal place.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information:
Net sales | $ | 205,000 | |
Cost of goods sold | 144,000 | ||
Beginning inventory | 46,000 | ||
Ending inventory | 36,000 | ||
a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.)
b. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)
c. Calculate the gross profit ratio. (Round your answer to 2 decimal place.)
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