New Home reported the following income statement for the year ended December 31, 2017:

Requirements
1. Compute New Home€™s inventory turnover rate for the year.
2. Compute New Home€™s days€™ sales in inventory for the year.

Transcribed Image Text:

NEW HOME Income Statement Year Ended December 31, 2017 Sales Revenue 5 120,000 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 Net Income 65,800 54,200 21,300 S32,900