PA7-3 Calculating and Interpreting the Inventory Turnover Ratio and Days to Sell [LO 7-5) 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 $5,300 4,200 510 610 2015 $5,360 4,050 440 510 Re 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.) 2016 Inventory Turnover Ratio times per year 2015 times per year days Days to Sel days O earch I 9 Seved PA7-5 (Supplement 7B) Analyzing and Interpreting the Effects of Inventory Errors [LO 7-S2) Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,400,000 12,064, eee $336, eee 2016 $1,800,000 1,350,000 $ 450,000 2017 $1,900,000 1,463,000 $ 437,000 2018 $2,400, 1.824.00 $ 576,00 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $14.000. 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. 2-0. Compute the gross profit percentage for each year (@) 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 Reg 2B Restate the partial income statements to reflect the correct amounts, after fixing the inventory error, O earch BI Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-o. 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. Req 1 Red 2A Reg 28 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 % % % 96 arch OBI g