College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cash $ 8,300 Accounts Receivable 1,960 Inventory 400 Prepaid Rent 600 Equipment 730 Accumulated Depreciation 110 Accounts Payable 1,388 Salaries and Wages Payable 300 Income Taxes Payable Common Stock 5,600 Retained Earnings 3,000 Sales Revenue 13,110 Cost of Goods Sold 7,300 Rent Expense 1,100 Salaries and Wages Expense 1,800 Depreciation Expense Income Tax Expense 110 1,200 Office Expense The company buys coasters from one supplier. All amounts In Accounts Payable on December 1 are owed to that supplier. The Inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. College Coasters records Its Inventory using perpetual Inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. a. Purchased 400 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60. b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. c. Sold 1,800 coasters on account on 12/3 at a unit price of $1.00. d. Collected $800 from customers on account on 12/4. e. Paid the supplier $1,500 cash on account on 12/18. f. Paid employees $480 on 12/23, of which $290 related to work done in November and $190 was for wages up to December 22 g. Loaded 100 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawall. The sale was made FOB destination with terms of n/60. Other relevant Information Includes the following at 12/31: h. College Coasters has not yet recorded $190 of office expenses incurred in December on account. 1. The company estimates that the equipment depreciates at a rate of $9 per month. One month of depreciation needs to be recorded. J. Wages for the period from December 23-31 are $100 and will be paid on January 15. k. The $600 of Prepaid Rent relates to a six-month period ending on May 31 of next year. 1. The company Incurred $700 of Income tax but has made no tax payments this year. m. No shrinkage or damage was discovered when the Inventory was counted on December 31. n. The company did not declare dividends and there were no transactions involving common stock. 1 December 01 Inventory Accounts Payable 168 2 December 02 Inventory Accounts Payable 3 December 03 Accounts Receivable Sales Revenue 168 405 405 1,800 1,800 4 December 03 Cost of Goods Sold 753 Inventory 753 5 December 04 Cash 800 Accounts Receivable 800 December 18 Accounts Payable Cash 7 December 23 Salaries and Wages Payable Salaries and Wages Expense Cash 8 December 31 No Journal Entry Required 9 December 31 Office Expenses Accounts Payable 10 December 31 Depreciation Expense Accumulated Depreciation-Equipment 1,500 1,500 290 190 480 190 190 9 9 11 December 31 Salaries and Wages Expense 100 Salaries and Wages Payable 100 12 December 31 Rent Expense Prepaid Rent 100 100 Adjusted COLLEGE COASTERS Balance Sheet As of December 31 Assets Current Assets Cash Accounts Receivable Inventory Prepaid Rent Total Current Assets Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries and Wages Payable Income Taxes Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 7,120 2,960 220 500 10,800 611 11,411 643 110 700 $ 1,453 5,600 3.000 x 8,600 19 $ 19 $ 10.053 Calculate the inventory turnover ratio and days to sell, assuming that inventory was $400 on January 1 of this year. (Use 365 days a year. Round your intermediate calculations and final answers to 1 decimal place.) Inventory Turnover Ratio Days to Sell 26.0 times per year 14.0 days