Question

Check my work mode: This shows what is correct or incorrect for the work you have completed s Selected financial data for Quick Sell, Inc., a retail store, appear as follows. Sales (all on account) Cost of goods sold Average inventory during the year Average receivables during the year Year 2 $ 799,000 411,000 195,000 150,000 Year 5 682,000 351,000 185,000 100,000 a-1. Compute the gross profit percentage for both years. (Round your percentage answers to the nearest whole number. I.e. 0.1234 as 12%.) a-2. Compute the inventory turnover for both years. (Round your answers to 1 decimal place.) a-3. Compute the accounts receivable turnover for both years. (Round your answers to 1 decimal place.) b. Which of the following show a positive or negative trend? Answer is complete but not entirely correct. Year 2 Year 1 Gross profit percentage 49 % Inventory turnover 41 times 3.3 times Accounts receivable 53 times 6.00 times turnover Gross profit rate Inventory turnover Accounts receivable turnover Growth in net sales Trend Positive Positive Negative Positive

Please help with figuring the Inventory Turnover. I'm not sure what I'm doing wrong.
Thank you!

Answer 1

Year 2 Year 1 Inventory turnover = Cost of goods sold / Average inventory during the year 2.1 times 1.9 times ($ 411,000 / $ 195,000) ($ 351,000 / $ 185,000)