Question
7 Inventory Ratio Calculations Delroi, Inc. provided the following data for 2008 and 2009: Inventory December 31, 2007 $201,000 December 31, 2008 191,100 December 31,
7 Inventory Ratio Calculations
Delroi, Inc. provided the following data for 2008 and 2009:
Inventory
December 31, 2007
$201,000
December 31, 2008
191,100
December 31, 2009
182,600
Cost of goods sold
2008
$632,000
2009
731,000
Gross margin
2008
$320,000
2009
440,000
Round all calculations to two decimal places.
(a) Calculate the inventory turnover ratio for 2008 and 2009.
2008 times
2009 times
(b) Calculate the gross margin return on inventory investment for 2008 and 2009.
2008
2009
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Corporate Financial Strategy
Authors: Ruth Bender
4th Edition
1136181105, 9781136181108
