Pugliese Whole Foods, Inc., has the following information for the years ending December 31, 2018, and December 31, 2017:

Requirements

1. Compute the rate of inventory turnover for Pugliese Whole Foods, Inc., for the years ended December 31, 2018, and December 31, 2017. Round the result to two decimal places.

2. Compute the days-sales-in-inventory for Pugliese Whole Foods, Inc., for the years ended December 31, 2018, and December 31, 2017.

3. What is a likely cause for the change in the rate of inventory turnover from 2017 to 2018?

Transcribed Image Text:

2017 $243,000 2018 Sales Revenue $249,000 Cost of Goods Sold: $ 16,000 125,000 141,000 18,000 $ 28,000 120,000 148,000 16,000 Beginning Inventory Net Purchases Cost of Goods Available Ending Inventory 123,000 126,000 62,000 $ 64,000 132,000 Cost of Goods Sold Gross Profit 111,000 Operating Expenses Net Income 57,000 $ 54,000