Calm Day reported the following income statement for the year ended December 31, 2019:

Requirements
1. Compute Calm Day's inventory turnover rate for the year. (Round to two decimal places.)
2. Compute Calm Day's days' sales in inventory for the year. (Round to two decimal places.)

Transcribed Image Text:

CALM DAY Income Statement Year Ended December 31, 2019 $ 128,000 Net Sales Revenue Cost of Goods Sold: $ 9,000 Beginning Merchandise Inventory Net Cost of Purchases 62,000 Cost of Goods Available for Sale 71,000 Less: Ending Merchandise Inventory 12,200 Cost of Goods Sold 58,800 Gross Profit 69,200 Operating Expenses 41,600 $ 27,600 Net Income