Using the Indigo financial statements in Appendix III, calculate the following ratios for the year ended April
Question:
Using the Indigo financial statements in Appendix III, calculate the following ratios for the year ended April 1, 2017 and March 31, 2018. Comment on the change and consider whether the ratios make sense given the nature of the company’s operations.
a. Inventory turnover ratio (round to two decimal places)
b. Days’ sales in inventory (round to the nearest day)
Inventory Turnover RatioInventory 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,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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2018 2017 a Inventory turnover ratio 604094000 244 ...View the full answer
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Related Book For 
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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