2.90 points CP7-3 Calculating and Interpreting the Inventory Turnover Ratito and

Question

2.90 points CP7-3 Calculating and Interpreting the Inventory Turnover Ratito and Days to Sell LO7-5] GameWorld Corp. is the world's largest multichannel video game retailer. The company reported the 2013 Net Sales Revenue Cost of Goods Sold $12,900 $12,400 7.840 7,440 2,200 1,500 2.600 2.200 Required 1. Determine the inventory turnover ratio and average days to sell inventory for 2013 and 2012. (Use 365 days in a year. Round your intermediate and final answers to 1 decimal place ) GS) and denominator (average inventory) 2013 mes per year Ratio Days to 2. Is times during 2013 (65 days to sell) O No Refere Worksheet

Explanation / Answer

1 2013 Inventory turnover 3.3 =7840/((2200+2600)/2) Days to sell 110.6 =365/3.3 2012 Inventory turnover 4.0 =7440/((2200+1500)/2) Days to sell 91.3 =365/4 2 No, it is not performing better as its inventory turnover is lower

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