INVENTORY ANALYSIS Singleton Inc. reported the following information for the current year:

Net sales $650,000 Inventory, 1/1 $21,250 Cost of goods sold 474,500 Inventory, 12/31 $24,850 Gross profit $175,500 Required:

Compute Singleton’s

(a) gross profit ratio,

(b) inventory turnover ratio, and

(c) average days to sell inventory.

Cornerstone Exercise