Refer to the information for Toby's on the previous page.

Last year, Toby's Hats had net sales of $45,000,000 and cost of goods sold of $29,000,000. Toby's had the following balances:

...............................................January 1.....................December 31

Accounts receivable............$5,500,000..................$6,500,000

Inventories.........................3,000,000....................2,800,000

Required:

1. Calculate the average inventory.

2. Calculate the inventory turnover ratio.

3. Calculate the inventory turnover in days.

4. Based on these ratios, does Toby's appear to be performing well or poorly?