Check my workCheck My Work button is now enabled3Item10Item 10 10 pointsPA7-3 Calculating and Interpreting the Inventory Turnover Ratio and Days to Sell [LO 7-5]Haymitch Global Industries is a world leading producer of loudspeakers and other electronics products, which are sold under brand names like JRH, Excelsior, and Haymitch/Krug. The company reported the following amounts in its financial statements (in millions):  2016 2015Net Sales$4,900  $4,960 Cost of Goods Sold 3,800   3,550 Beginning Inventory 480   400 Ending Inventory 590   480    Required:Determine the inventory turnover ratio and average days to sell inventory for 2016 and 2015. (Use 365 days in a year. Round your intermediate and final answers to 1 decimal place.)

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Asked Mar 23, 2019
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PA7-3 Calculating and Interpreting the Inventory Turnover Ratio and Days to Sell [LO 7-5]

Haymitch Global Industries is a world leading producer of loudspeakers and other electronics products, which are sold under brand names like JRH, Excelsior, and Haymitch/Krug. The company reported the following amounts in its financial statements (in millions):
 

  2016   2015
Net Sales $ 4,900     $ 4,960  
Cost of Goods Sold   3,800       3,550  
Beginning Inventory   480       400  
Ending Inventory   590       480  
   

 
Required:

  1. Determine the inventory turnover ratio and average days to sell inventory for 2016 and 2015. (Use 365 days in a year. Round your intermediate and final answers to 1 decimal place.)

 

 

 

 
 
 
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Expert Answer

Step 1

Calculate the average inventory for the year 2015:

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Step 2

Calculate the inventory turnover ratio for the year 2015:

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Step 3

Calculate the average number of days to sell inv...

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