Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year, Laurel, Inc. had net sales of $9,375,000 and cost of goods sold of $4,594,000. Laurel had the following balances: January 1 December 31 Accounts receivable $725,000 450,000 $775,000 425,000 Inventory Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. times 3. Calculate the inventory turnover in days. days 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly? 1. Based on the ratios Nikkola is performing very well. 2. Based on the ratios Nikkola is not performing as expected. 3. Without more detailed information on Nikkola's and its industry, it is difficult to classify these results as outstanding, poor, or somewhere in between Feedback Check My Work 1. Average Inventory = (Beginning + Ending Inventory)/2 2. Inventory Turnover Ratio - Cost of Goods Sold/Average Inventory 3. Inventory Turnover in Days = 365(Days in a Year)/Inventory Turnover Ratio