Net sales $ 245,000   Cost of goods sold   176,000   Beginning inventory   54,000   Ending inventory   44,000      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.)

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 46E
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Use the following information:

 
       
Net sales $ 245,000  
Cost of goods sold   176,000  
Beginning inventory   54,000  
Ending inventory   44,000  
 
 

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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