Answer:
Inventory turnover for 2022 = 1.25
Inventory turnover for 2021 = 1.3
Days Sales in Inventory for 2022= 145.10
Days Sales in Inventory for 2021= 180.044
Gross Profit Rate for 2022= 473750/1,895,000*100= 25%
Gross Profit Rate for 2021= 0.35 * 100= 35%
Explanation:
2022 2021 2020
Inventory $565,000 $572,000 $320,000
Net sales 1,895,000 1,784,000 1,360,000
Cost of goods sold 1,421,250 1,159,600 930,000
Inventory turnover= Cost Of Goods Sold/ Average Inventory
Inventory turnover for 2022 = 1,421,250/ $565,000 + $572,000
Inventory turnover for 2022 = 1,421,250/ 1137,000
Inventory turnover for 2022 = 1.25
Inventory turnover for 2021 = 1,159,600/$572,000 + $320,000
Inventory turnover for 2021 = 1,159,600/892,000
Inventory turnover for 2021 = 1.3
Days Sales in Inventory for 2022 = Ending Inventory/ Cost Of Goods Sold * 365
Days Sales in Inventory for 2022 =($565,000/1,421,250)*365
Days Sales in Inventory for 2022 =(0.3975)*365
Days Sales in Inventory for 2022= 145.10
Days Sales in Inventory for 2021 = Ending Inventory/ Cost Of Goods Sold * 365
Days Sales in Inventory for 2021 =$572,000 / 1,159,600 * 365
Days Sales in Inventory for 2021= 0.4933*365
Days Sales in Inventory for 2021= 180.044
Gross Profit Rate= Gross Profit/ Sales * 100
Gross Profit Rate= Sales - Cost Of Goods Sold / Sales * 100
Gross Profit Rate for 2022= 1,895,000-1,421,250/1,895,000* 100
Gross Profit Rate for 2022= 473750/1,895,000*100= 25%
Gross Profit Rate for 2021= 1,784,000 -1,159,600/ 1,784,000 * 100
Gross Profit Rate for 2021= 624,400/1,784,000 * 100
Gross Profit Rate for 2021= 0.35 * 100= 35%
