Answered: Use the following information relating…

Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days’ sales in inventory ratio, for years 2022 and 2023.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days’ sales in inventory ratio, for years 2022 and 2023.

Sales
Cost of Goods Sold
$ 75,000
90,000
100,000
Average Inventory
$ 8,000
9,500
11,000
Year 2021
$52,500
63,000
70,000
Year 2022
Year 2023

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