Create an Excel spreadsheet to answer the following (show formulas):

1. Compute the monthly inventory turnover ratio for each of the twelve months. Show formulas.
2. What are the annual cost of goods sold and the average inventory for the year? Show formulas.
3. Compute the annual inventory turnover ratio. Using formulas.

Using the following information:

A retailer in Las Vegas has an ending inventory of $250,000 as at December 31, 2016 and the following accounting information.

Month Ending Inventory Cost of Goods Sold January $225,000 $1,200,000 February $325,000 $1,250,000 March $240,000 $1,350,000 April $325,000 $1,500,000 May $460,000 $950,000 June $220,000 $850,000 July $85,000 $1,650,000 August $156,000 $1,325,000 September $220,000 $1,750,000 October $265,000 $850,000 November $100,000 $2,200,000 December $350,000 $3,500,000