Q.3. [Question Paper] Question 3: Cost of Goods Sold and Inventory 35% = (10% + 6% + 10% + 9%) it contains 2 pages Parta) 10% Drone Inc. is a leading manufacturer of digital wearable products. In a recent year, it reported the following in million dollars: . Net sales revenue Cost of sales Beginning inventory Ending inventory $78,660 $58,606 $2,538 $2,678 Required: determine the inventory turnover ratio and average days to sell inventory for the year. Variables in the formula Numbers in the ratio The ratio iii. Inventory turnover = = v. iv. Numbers in the ratio No. of days Variables in the formula vi. viii. Average =X. days to sell vii. ix. Part b) 6% Based on the facts and your answers from Part a) above, concerning the ways to properly interpret the inventory turnover ratio and the average days to sell inventory, fill in the blanks, as indicated, with the best words or phrases: The inventory turnover ratio reflects i. during the period. Thus, Drone Inc. iii. from Part c) v.] iv. during the year. average inventory was ii. its average inventory (use your answer The average days to sell inventory indicates the average time it takes Drone Inc. to v. inventory to customers. Thus, Drone Inc. takes an average of about (use your answer from Part c) x.) days to vi. its digital wearable products to its customers