Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Calculate the inventory turnover, days sales in inventory, and gross profit margin for 2021 and 2020 2. Based on this information, does the company's
1. Calculate the inventory turnover, days sales in inventory, and gross profit margin for 2021 and 20202. Based on this information, does the company's liquidity appear to be improving or deteriorating? Sandhill Co. reported the following information for a three-year period: 2021 2020 2019 Ending inventory $21,000 $33,000 Sales 136,000 $28,000 142,000 51,120 110,000 Cost of goods sold 48,960 1939,600 Profit 31,000 39.000 44,000 Calculate the inventory turnover, days sales in inventory, and gross profit margin for 2021 and 2020. (Round number of days answers to O decimal places, e.g. 52. Round other answers to 2 decimal places, es: 52.75. Use 365 days for calculation) 2021 2020
2. Based on this information, does the company's liquidity appear to be improving or deteriorating?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started