Sanchez Wholesale, Inc., has the following information for the years ending May 31, 2012 and 2011:

Requirements
1. Compute the rate of inventory turnover for Sanchez Wholesale, Inc., for the years ended May 31, 2012 and 2011. Round the result to two decimal places.
2. Compute the days-sales-in-inventory for Sanchez Wholesale, Inc., for the years ended May 31, 2012 and 2011.
3. What is a likely cause for the change in the rate of inventory turnover from 2011 to2012?

Transcribed Image Text:

(In thousands) 2012 2011 $228 $226 Cost of Goods Sold: Beginning Inventory $ 32 Net Purchases Cost of Goods Available 171 Ending Inventory Cost of Goods Sold s 35 140 175 32 139 25 Gross Profit Operating Expenses Net Income 146 82 39 S 43 143 83 41 42