Answer:
2022:
TO 3.48
Days outstanding: 105
Gross Profit rate: 20.33%
2021:
TO 3.83
Days Outstanding 95
Gross profit rate: 25.33%
Explanation:
2022
[tex]\frac{Sales}{Average Inventory} = $Inventory Turnover[/tex]
where:
[tex]$Average Inventory=(Beginning Inventory + Ending Inventory)/2[/tex]
Sales for 2022: $ 1,948,000
Average Inventory: (553,000 +586,000)/2 =560,500
[tex]\frac{1948000}{560500} = $Inventory Turnover[/tex]
Inventory TO 3.475468332
[tex]\frac{365}{Inventory TO} = $Days on Inventory[/tex]
[tex]\frac{365}{3.47546833184657} = $Days on Inventory[/tex]
Days on Inventory 105
Gross Profit Rates:
[tex]\frac{Gross \: Profit}{sales} \times100[/tex]
(1,948,000 - 1552,000)/1,948,000 x 100 = 20.33%
2021:
Sales 1725000
Average Inventory (332,000 + 568,000)/2 = 450,000
[tex]\frac{1725000}{450000} = $Inventory Turnover[/tex]
Inventory TO 3.833333333
[tex]\frac{365}{3.83333333333333} = $Days on Inventory[/tex]
Days on Inventory 95
Gross Profit Rates:
[tex]\frac{Gross \: Profit}{sales}\times 100[/tex]
(1,725,000 - 1,288,000)/1,725,000 = 25.33%