Part C Homework Problem: Using the formulas for inventory turnover ratio, average days in inventory, and gross profit ratio, compute answers for the following two problems:

First problem: A company reports the following amounts for 2030: Inventory (beginning) $ 20,000 Inventory (ending) 30,000 Purchases 160,000 Purchase returns 10,000

Compute the following financial calculations for 2030:

• Cost of goods sold
• Inventory turnover ratio
• Average days in inventory

Second problem: A company reports the following amounts at the end of the year: Sales revenue $ 360,000 Cost of goods sold 215,000 Net income 58,000

Compute the company's gross profit ratio.