Exercise 6-12 The following information is available for Blossom Company for thr
ID: 2543462 • Letter: E
Question
Exercise 6-12
The following information is available for Blossom Company for three recent fiscal years.
Calculate the inventory turnover, days in inventory, and gross profit rate for 2017 and 2016. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.)
-> í Scourc httpa//ccugen.vilaypus.ccmodugentí'main.uni Rcturn to Blackboard WileyPLUS mel, Accounting, Ge Fxercisa 6-12 The following Information iswallable for Blossom company for thrce rcccnt fiscal Yers. FxAnciaR -11 2017 $5G2.581 1,953,474 1.540,816 2016 56G,77G 1,718,740 1,277.995 2015 $332. 22-1 1,292,974 92g,J&J; Inventory Reviow Score Raview Results by Studdy Cosl ufyouds sol Calculate tha inv n or turnover, days in inventory, and gra" place, e.q. 5.2%.) rott rate tor 2017 an 2016 Round inventory turnover to 1 decin al 1aca, g. 5.2 days in inventory to O d ci al 1aces 9-125 and gross pratit rate to i d cinal Inventory Turnower Day: In Inventory Gross Prot Rate imcs days days Qucstion Attempts: 0 of 3 used UE FOR LATER O lype hene to searchExplanation / Answer
Workig note
Calculation of Average Inventory for 2016 & 2017
Average Inventory = (Opening Inventory + Ending Inventory) / 2
Anwer
(1) Inventory Turnover = COGS / Average Inventory
(2) Days in Inventory = 365 / Inventory Turnover
(3) Gross Profit rate = [(Net sales - COGS) / Net Sales ] * 100