Anderson Electronics, Inc., has the following information for the years ending January 31, 2012 and 2011:

Requirements
1. Compute the rate of inventory turnover for Anderson Electronics, Inc., for the years ended January 31, 2012 and 2011. Round the result to two decimal places.
2. Compute the days-sales-in-inventory for Anderson Electronics, Inc., for the years ended January 31, 2012 and 2011.
3. What is a likely cause for the change in the rate of inventory turnover from 2011 to2012?

Transcribed Image Text:

(In thousands) Sales Revenue Cost of Goods Sold 2012 2011 $228 $224 Beginning Invry 24 Net Purchases Cost of Goods Available176 Ending Inventory Cost of Goods Sold $ 31 147 178 24 152 Gross Profit Operating Expenses Net Income 156 72 48 S 24 154 70 49 S 21