Required information

[The following information applies to the questions displayed below.] The Slumber Store (TSS) is a national wholesaler of beds, mattresses, pillows, and sheets. Key totals from TSSs 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			346,500				405,250				556,300
Gross Profit			213,500				209,750				213,700
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 companys 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 companys 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?

Inventory turnover this year?

Inventory turnover next year?

Inventory days to sell this year?

Inventory days to sell next year?

Is Inventory expected to improve or worsen next year?

Gross profit percentage this year? (Round to 2 decimal places)

Gross profit percentage next year? (Round to 2 decimal places)

Is the gross profit expected to improve or worsen next year?