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Haymitch Global Industries is a world leading producer of loudspeakers and other electronics products, which are sold under brand names like JRH, Excelsior, and Haymitch/Krug.

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Haymitch Global Industries is a world leading producer of loudspeakers and other electronics products, which are sold under brand names like JRH, Excelsior, and Haymitch/Krug. The company reported the following amounts in its financial statements (in millions): Net Sales Cost of Goods Sold Beginning Inventory Ending Inventory 2016 $5,600 4,500 540 630 2015 $5,660 4,400 460 540 Required: 1. Determine the inventory turnover ratio and average days to sell inventory for 2016 and 2015. (Use 365 days in a year. Round your intermediate and final answers to 1 decimal place.) Inventory Turnover Ratio Days to Sem 2016 times per year days 2015 times per year days Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 2016 $1,600,000 $2,000,000 1,184,000 1,460,000 $ 416,000 $540,000 2017 $2,100,000 1,575,000 $ 525,000 2018 $2,600,000 1,924,000 $ 676,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $16,000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction 2.b. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. SHERWOOD COMPANY Income Statements (Corrected) 2015 2016 2017 2018 Net Sales Cost of Goods Sold Gross Profit Rou Req 2A Reg 1 Reg 2A Reg 2B Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. (Round your answers to the nearest whole percent.) 2015 2016 2017 2018 % % % Before Correction After Correction % % % % Reg 1 Reg 2A Reg 2B Does the pattern of gross profit percentages lend confidence to your corrected anlounts? Oros ONO

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