The following selected information has been compiled for Sherwood Park Inc. Sherwood Park owns a series of discount clothing stores in Western Canada.

You are the new accountant hired by Sherwood Park. The owner tells you that, based on sales growth, the company is doing so well that expansion plans are under discussion.
Required:
Calculate the:
a. Inventory turnover for 2015 and 2016.
b. Number of days sales in inventory for 2015 and 2016.
c. Gross margin and gross margin ratio for 2014, 2015, and 2016. Do you agree with the owner about the success of Sherwood Park? If not, what do your calculations show that contradicts the owner€™s opinion?

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Inventories Sales revenue Cost of goods sold 2016 $1,410,000 6,046,000 4.970,000 2015 1,300,000 5,500,000 4,490,000 2014 S 800,000 ,160,000 3.300,000