Answer:
<u>2022:</u>
TO 3.48
Days outstanding: 105
Gross Profit rate: 20.33%
<u>2021:</u>
TO 3.83
Days Outstanding 95
Gross profit rate: 25.33%
Explanation:
2022
 
 
where:	
 
 
Sales for 2022:           $  1,948,000
Average Inventory:  (553,000 +586,000)/2 =560,500
 
 
<u>Inventory TO	3.475468332</u>
 
 
 
 
<u>Days on Inventory	105</u>
<u>Gross Profit Rates:</u>

(1,948,000 - 1552,000)/1,948,000 x 100 = 20.33%
2021:
Sales	1725000
Average Inventory	(332,000 + 568,000)/2 = 450,000
 
 
<u>Inventory TO	3.833333333</u>
 
 
Days on Inventory	95
<u>Gross Profit Rates:</u>

(1,725,000 - 1,288,000)/1,725,000 =<u> 25.33%</u>