Question

Haymitch Global Industries is a world leading producer of loudspeakers and other electronics products, which are sold under brand names like JRH, Excelsior, and Haymitch/Krug. The company reported the following amounts in its financial statements (in millions): 2016 $6,300 5,200 2015 $6,360 Net Sales Cost of Goods Sold Beginning Inventory Ending Inventory 5,000 530 520 520 720 Required: 1. Determine the inventory turnover ratio and average days to sell inventory for 2016 and 2015. (Use 365 days in a year Round your intermediate and final answers to 1 decimal place.) 2016 2015 Inventory Tumover Ratio times per year times per year days Days to Sell days

Answer 1

Inventory tanoveevatio Cost of goods sold Average inventory Average inventory - opening & closing Average chventory -2015 - $S30 +45 20 41050 - $525 22 - 2016 - $520 44720 $1240 = 4620 Inventay tundvee vah'o - 2015 - $ 5000 $525 - 9-52 - 2016 - 2 8.38 $5200 8620 * Day to sell Average chientory x 365 cost of goods sold" - 2015 - $525 $5000 365 = 28-32 day - 2016 - 5620 -X 365 $5.00 2 43.51 days 2015 2016 Inventory teenovel natio 9.5 | 38.82 timer flye days 8.38 43.51 times Punca days Days to sell