Calculate the inventory turnover ratio

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Question - Inventory Ratio Calculations - Sanchez LTD. Provide the following data for 2016 and 2017:

Inventory

December 31, 2015 $352,000

December 31, 2016 $555,000

December 31, 2017 $388000

Cost of Goods Sold

2016 $1,172,000

2017 $1,258,000

Gross Margin

2016 $512,000

2017 $574,000

Required -

a) Calculate the inventory turnover ratio for 2016 and 2017.

b) Calculate the gross margin return on inventory investment for 2016 and 2017.

Reference no: EM132855123

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