Pugliese Whole Foods, Inc., has the following information for the years ending December 31, 2016 and 2015:

Requirements

1. Compute the rate of inventory turnover for Pugliese Whole Foods, Inc., for the years ended December 31, 2016 and 2015. 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, 2016 and 2015.

3. What is a likely cause for the change in the rate of inventory turnover from 2015 to 2016

Transcribed Image Text:

2016 2016 Sales Revenue $249,000 $243,000 Cost of Goods Sold: $ 16,000 $ 28,000 120,000 148,000 16,000 Beginning Inventory Net Purchases 125,000 Cost of Goods Available 141,000 Ending Inventory Cost of Goods Sold 18,000 123,000 132,000 Gross Profit 126,000 111,000 62.000 $ 64,000 Operating Expenses Net Income 57,000 $ 54,000