Using the following information, calculate inventory turnover ratio , the average days in inventory, and the gross

Question:

Using the following information, calculate inventory turnover ratio, the average days in inventory, and the gross profit ratio for Howard Company for the year ended December 31, 2011. (Round to two decimal places.)

Sales .................. $225,000

Cost of goods sold..............175,000

Ending inventory, December 31, 2011 ...... 15,275

Ending inventory, December 31, 2010 ...... 18,750

Net income ................ 36,500

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,... Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...