Merchandise Mavens Corporation sells goods throughout North America. One of its product lines has recently reported the following information to you at head office. Based on this information, you have become concerned that the company is experiencing difficulties selling the product.

2015

2014

2013

Cost of Goods Sold

$

383,000

$

366,000

$

342,000

Gross Sales

416,000

416,000

416,000

Inventories

54,000

30,400

30,000

Sales Returns and Allowances

14,000

2,800

4,200

1.	Calculate the gross profit ratio for the three years. (Round your answers to 1 decimal place.)

3-a.	Determine the inventory turnover ratio and days to sell inventory for 2015 and 2014. (Use 365 days in a year. Round your answers to 1 decimal place.)

3-b.	What do the calculations demonstrate about Merchandise Mavens Corporations inventory turnover ratio?