Using the Spin Master financial statements in Appendix III, calculate the following ratios for the years ended

Question:

Using the Spin Master financial statements in Appendix III, calculate the following ratios for the years ended December 31, 2016, and December 31, 2017. At December 31, 2015, Spin Master had an ending inventories balance of $49,140,000 and cost of sales of $420,486,000. Comment on the change.

a. Inventory turnover ratio (round to two decimal places)

b. Days’ sales in inventory (round to the nearest day)

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,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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