Last year, Esmeralda Company had net sales of $$400,000,000$ and cost of goods sold of $$300,000,000.$ Esmeralda's had the following balances:

January $1$

December $31$

Accounts receivable

$$10,000,000$

$$9,500,000$

Inventories

$8,000,000$

$9,000,000$

Brief Exercise $15-29$ Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days

Objective $3$ Example $15\mathrm{.}5$

Refer to the information for Esmeralda's above.

Required:

Note: Round answers to one decima place.

Calculate the average inventory.

Calculate the inventory turnover ratio.

Calculate the inventory turnover in days.

Conceptual Connection Based on these ratios, does Esmeralda's appear to be performing well or poorly?