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HU Electronics has been selling home appliances and consumer electronics for a number of years. An extract of the Profit and Loss Statement for
HU Electronics has been selling home appliances and consumer electronics for a number of years. An extract of the Profit and Loss Statement for the business for the two (2) financial years ended 30 June is provided below. HU Electronics Profit and Loss Statement (Extract) For the years ended 30 June 2021 2022 ($'000) ($'000) Gross sales revenue 23,588 24,965 less: Sales returns and allowances 413 399 Net sales revenue 23,175 24,566 Beginning inventory 910 1,435 Purchases (net) Ending inventory 10,490 10,696 1,435 1,199 Cost of sales 9,965 10,932 Required Calculate the: days in inventory and gross profit ratio for HU Electronics for each of the two financial years ended 30 June 2021 and 2022. Please ensure all ratios are expressed to two decimal places. You do not need to show your calculations.
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