Question 1 This information is available for Wildhorse Co. for 2017, 2018, and 2

Question

Question 1 This information is available for Wildhorse Co. for 2017, 2018, and 2019 2017 2018 2019 Beginning inventory 104,000 $311,500 $410,500 Ending inventory Cost of goods sold 891,000 1,129,000 1,290,000 Sales revehue 1,194,500 1,595,000 1,895,500 311,500 410,500 474,000 Calculate inventory turnover for Wildhorse Co. for 2017, 2018, and 2019. (Round 2017 2018 2019 Inventory turmover LINK TO TEXT Calculate days in inventory for Wildhorse Co. for 2017, 2018, and 2019. (Round ar 2017 2018 2019 Days in inventory days days days LINK TO TEXT Calculate gross profit rate for Wildhorse Co. for 2017, 2018, and 2019. (Round ans 2017 2018 2019 Gross profit rate

Explanation / Answer

inventory turnover = cost of goods sold/averge inventory Average invnetory =(beginning +ending inventory)/2 2017 2018 2019 cost of goods sold (a) 891,000 1,129,000 1,290,000 Beginning inventory 104,000 311,500 410,500 ending invnetory 311,500 410,500 474,000 Average inventory(b) 207750 361000 442250 inventory turnover c=a/b 4.29 3.13 2.92 (I have rounded it upto two decimals since I cannot see upto how many decimals the question requires you to round, so please make changes if required as the answer may vary because of that) Days in inventory            = 365/inventory turnover 2017 2018 2019 days 365 365 365 invnetory turnover 4.29 3.13 2.92 Days in inventory 85 117 125 Gross profit rate = ( sales - cost of goods sold)/sales 2017 2018 2019 Sales 1,194,500 1,595,000 1,895,500 less cost of goods sold 891,000 1,129,000 1,290,000 Gross profit 303,500 466,000 605,500 gross profit ratio 25.41% 29.22% 31.94%

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