Question - Inventory Ratio Calculations
Delroi, Inc. provided the following data for 2008 and 2009:
Inventory
December 31, 2007 $201,000
December 31, 2008 191,100
December 31, 2009 182,600
Cost of goods sold 2008 $632,000
2009
731,000
Gross margin
2008
$320,000
2009
440,000
Round all calculations to two decimal places.
(a) Calculate the inventory turnover ratio for 2008 and 2009.
(b) Calculate the gross margin return on inventory investment for 2008 and 2009.