Answer:
1.Inventory Turnover ratio 2013= 8.09 Times
Inventory Turnover ratio 2012= 9.21 Times
2.Days to sell 2013= 45.11 Days
Days to sell 2012= 39.63 Days
Explanation:
Calculation for Determining the inventory turnover ratio and average days to sell inventory for 2013 and 2012.
Haymitch Global Industries
A. The Inventory Turnover Ratio times per year times per year
Using this formula
Inventory Turnover = Cost of Goods Sold /Average inventory
2013
Inventory Turnover ratio= 4,900/[(550+660)/2]
Inventory Turnover ratio=4,900/(1,210÷2)
Inventory Turnover ratio=4,900/605
Inventory Turnover ratio 2013= 8.09 Times
2012
Inventory Turnover ratio= 4,700/[(470+550)/2]
Inventory Turnover ratio=4,700/(1,020÷2)
Inventory Turnover ratio=4,700/510
Inventory Turnover ratio 2012= 9.21 Times
Calculation for Days to Sell days
Days to sell
Using this formula
Days to sell = 365/Inventory Turnover
2013
Days to sell= 365/8.09
Days to sell 2013= 45.11 Days
2012
Days to sell = 365/9.21
Days to sell 2012= 39.63 Days