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The Slumber Store $($TSS$)$ is a national wholesaler of beds, mattresses, pillows, and sheets.

Key totals from TSS$$s most recent and forecasted financial statements are presented in the table below.

From the income statement Last Year This Year Next Year

Sales Revenue $ $560,000$ $ $615,000$ $ $770,000$

Cost of Goods Sold $346,500405,250556,300$

Gross Profit $213,500209,750213,700$

From the balance sheet Last Year This Year Next Year

Inventories $ $88,000$ $ $101,808$ $ $179,825$

Required:

$1.$ Use the financial statement totals to compute the company$$s actual inventory turnover ratio for this year and its forecasted inventory turnover ratio for next year. Also compute the days$-$to$-$sell for this year $($actual$)$ and next year $($forecasted$).$ Is inventory turnover expected to improve or worsen next year?

$2.$ Use the financial statement totals to compute the company$$s actual gross profit percentage for this year and its forecasted gross profit percentage for next year. Is the gross profit percentage expected to improve or worsen next year?