Exercise #5
Compute inventory turnover, days in inventory, and gross margin rate.
(LO 6)
This information is available for Steff Corporation for 2012, 2013, and 2014.
2012
2013
2014
Beginning inventory
$? 100,000
$? 330,000
$? 400,000
Ending inventory
330,000
400,000
480,000
Cost of goods sold
900,000
1,120,000
1,300,000
Sales revenue
1,200,000
1,600,000
1,900,000
Instructions
Calculate inventory turnover, days in inventory, and gross margin rate for Steff’s Photo Corporation for 2012, 2013, and 2014. Comment on any trends.