Exercise #5

Compute inventory turnover, days in inventory, and gross margin rate. (LO 6)

This information is available for Steff Corporation for 2012, 2013, and 2014.

	2012	2013	2014
Beginning inventory	$? 100,000	$? 330,000	$? 400,000
Ending inventory	330,000	400,000	480,000
Cost of goods sold	900,000	1,120,000	1,300,000
Sales revenue	1,200,000	1,600,000	1,900,000

Instructions

Calculate inventory turnover, days in inventory, and gross margin rate for Steff's Photo Corporation for 2012, 2013, and 2014. Comment on any trends.