E6-25 Computing inventory turnover and days' sales in inventory New Home reported the following income statement for the year ended December 31, 2017: NEW HOME Income Statement Year Ended December 31, 2017 $ 120,000 Sales Reven Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold $ 8,800 70,000 78,800 13,000 Gross Profit Operating Expenses 65,800 54,200 21,300 $ 32,900 Net Income 1. Compute New Home's inventory turnover rate for the year. (Round to two decimal places.) Requirements 2. Compute New Home's days' sales in inventory for the year. (Round to two decimal places.)