Calculating the Average Inventory, the Inventory Tumover Ratio, and the Inventory Turnover in Days Last year, Toby's Hats had net sales of $45,000,000 and cost of goods sold of $29,000,000. Toby's had the following balances: January 1 December 31 Accounts receivable $5,500,000 $6,500,000 Inventory 3,000,000 2,800,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory 6,000,000 X 2. Calculate the inventory turnover ratio 7.5 X times 3. Calculate the inventory turnover in days. 48.7 X days 4. CONCEPTUAL CONNECTION Based on these ratios, does Toby's appear to be performing well or poorly? 1 Based on the ratio Toby is performing very well 2. Based on the rabios Toby is not performing as expected 3. without more detailed information on Toby's and its industry, it is difficult to clarify these results as outstanding, poor, or somewhere in between 2X 1. Average Inventory - Beginning inventory Ending Inventory)/2 2. Inventory Turnover Ratio - Cost of Goods Sold / Average Inventory 3. Inventory Turnover in Days 165 (days in a year / Inventory over ratio Od My Work Che Wand