1.A company has average inventory of $50,000 and cost of goods sold for the year of $200,000. What is the inventory turnover? The days' sales in inventory? How long did the average inventory sit on the shelf before it was sold?

2.A second company has average inventory of $40,000 and cost of goods sold for the year of $200,000. What is the inventory turnover? The inventory period? Which company has more efficient use of inventory?

3. In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $0.25 to go buy $10 worth of groceries, then your child makes twice as much on the trip as we do." The grocery chain has the following financial statement

Sales..........$114 million

Net Income.....1.42 million

Total Assets...8 million

Total Debt.....3 million

-Please evaluate the claim by calculating the profit margin for the grocery chain-