Answer:
<em>2022</em>
<em>TO: 3.3333</em>
<em>Days Outstanding: 110</em>
<em>Gross profit margin: 40%</em>
<em></em>
<em>2021</em>
<em>TO: 3.947368</em>
<em>Days Outstanding: 92.47</em>
<em>Gross profit margin: 46.8%</em>
Explanation:
<em></em>
<em>2022</em>
where:
Sales 1860000
Average Inventory: (550,000 + 566,000)/2 = 558,000
Inventory TO 3.333333333
<u>Days outstanding:</u>
Days on Inventory 110
<u>Gross Profit Margin:</u>
(1,860,000 - 1,116,000)/1,860,000 = 0.40 = 40%
<em>2021</em>
where:
Sales 1,800,000
Average Inventory: (566,000 + 346,000)/2 = 456,000
Inventory TO 3.947368
<u>Days outstanding:</u>
Days on Inventory 92.47
<u>Gross Profit Margin:</u>
(1,800,000 - 957,600)/1,800,000 = 0.468 = 46.8%