Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,812,000. Dogwood

Question:

Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,812,000. Dogwood had the following balances:

Required:
Round answers to one decimal place.
1. Calculate the average inventory.
2. Calculate the inventory turnover ratio.
3. Calculate the inventory turnover indays.

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,...