Question
Calculate the inventory turnover, days in inventory, and gross profit rate. The following information is available for Sage Hill Inc. for three recent fiscal years.
Calculate the inventory turnover, days in inventory, and gross profit rate.
The following information is available for Sage Hill Inc. for three recent fiscal years.
| 2017 | 2016 | 2015 |
Inventory | $554,890 | $563,389 | $327,514 |
Net Sales | 1,948,340 | 1,696,550 | 1,302,478 |
Cost of goods sold | 1,540,998 | 1,294,828 | 964,760 |
| 2017 | 2016 |
Inventory Turnover | 6.1 times | 2.9 times |
Days in Inventory | 59.8 days | 125.8 days |
Gross Profit Rate | 20% | 23% |
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Financial Management Core Concepts
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