Inventory Ratio Calculations Delroi, Inc. provided the following data for 2008 and 2009:

Inventory
December 31, 2007	$210,000
December 31, 2008	190,500
December 31, 2009	182,200
Cost of goods sold
2008	$622,000
2009	744,000
Gross margin
2008	$340,000
2009	420,000

Round all calculations to two decimal places. (a) Calculate the inventory turnover ratio for 2008 and 2009. 2008Answertimes 2009Answertimes (b) Calculate the gross margin return on inventory investment for 2008 and 2009. 2008Answer 2009Answer (c) The fact that Delroi's inventory levels have fallen over the past two years, while gross margin has increased, is an indication that Delroi is becoming more lean in its operations. AnswerTrueFalse