you are provided the following information about your audit client. All dollar amounts are in millions.

201920182017

Sales $92.8$86.8$69.6

Cost of Sales 68.967.254.0

Begin Inventory 9.28.46.0

Ending Inventory 11.29.27.6

1. Calculate the following two ratios for 2019, 2018, and 2017. (rounding to 1 decimal place) .

• Gross margin as a percentage of sales = (Sales - Cost of Sales ) / Sales
• Inventory turnover = Cost of Sales / Average Inventory

2- From your calculations, identifytwotrends in the ratios during the time period

3- Industry average for inventory turnover for the client's industry is 10.0. Incorporating this additional information, analyze and briefly identify your audit concerns regarding the inventory account of your client