Question

low corporations has 100,000 common shares outstanding during 2025
requirement 1. compute the inventory turnover, days sales in inventory and gross profit percentage for low corporation for 2025
compute the inventory turnover (round your answer to two decimal places, x.xx )
the inventory turnover = cost of goods sold \div average merchandise inventory = 2.91 times
compute the days sales in inventory (round interm calculations to two decimal places, x.xx and round your final answer to the nearest whole day )
the days sales in inventory =
balance sheets
income statement
365 days \div accounts receivable turnover ratio
365 days \div inventory turnover
365 days \div total current assets
cost of goods sold \div average merchandise inventory
cost of goods sold \div net sales revenue
gross profit \div net sales revenue
gross profit \div total assets
net credit sales \div average net accounts receivable
net credit sales \div net income
days
low corporation
income statement
years ended may 31, 2025 and 2024
2025
2024
net sales revenue
$ 51,800,000 $ 41,000,000
cost of goods sold
29,800,000 29,300,000
interest expense
700,000 140,000
all other expenses
8,700,000 7,800,000
net income
$ 23,600,000 $ 4,360,000
print
done

Explanation:

Step1: Recall the formula for days' sales in inventory

The formula for days' sales in inventory is $365\ \text{days} \div \text{Inventory turnover}$.

Step2: Substitute the given inventory turnover

We know the inventory turnover is 2.91. So we calculate $365\div2.91$.

Step3: Perform the division

$365\div2.91\approx125.43$. Rounding to the nearest whole day, we get 125.

Answer:

125 (and the formula used is $365\ \text{days} \div \text{Inventory turnover}$)