Calculate MHR's inventory turnover ratio and the number of days inventory on hand for 2011 and 2010.

Question:

Calculate MHR's and the number of days inventory on hand for 2011 and 2010. (The amount of inventory sold in 2011 and 2010 isn't in the income statement-you have to look in the notes for it.) Evaluate the change in turnover over the two-year period.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...