Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate inventory turnover, days sales in inventory, and gross profit margin. 2021 2020 2019 Ending inventory$20,000$30,000$34,000 Sales 125,000 128,000 115,000 Cost of goods sold 50,000
Calculate inventory turnover, days sales in inventory, and gross profit margin. 2021 2020 2019 Ending inventory$20,000$30,000$34,000 Sales 125,000 128,000 115,000 Cost of goods sold 50,000 51,200 46,000 Profit 30,000 42,000 40,000 Instructions a. Calculate the inventory turnover, days sales in inventory, and gross profit margin for 2021 and 2020. b. 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 to Expert-Tailored 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