Acc280 Financial Accounting: E6-13 This information is available for Santo’s Photo Corporation

Acc280 Financial Accounting

E6-13
This information is available for Santo’s Photo Corporation for 2007, 2008, and 2009.
2007 2008 2009
Beginning inventory 113,000 301,000 403,000
Ending inventory 301,000 403,000 483,000
Cost of goods sold 896,000 1,113,000 1,220,000
Sales 1,220,000 1,640,000 1,920,000

Instructions:
a. Calculate inventory turnover, days in inventory, and gross profit rate (from Chapter 5) for Santo’s Photo Corporation for 2007, 2008, 2009. (Round inventory turnover and days in inventory to 1 decimal place. Round gross profit rate to 2 decimal places. Gross profit rate should not be expressed as a percentage. Be sure to use leading zeros in your answer, for example, .75 should be 0.75.)
b. Comment on any trends.
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