I need help to answer this question please value 290 points

value 2.90 points CP7-3 Calculating and Interpreting the Inventory Turnover Ratio and Days to GameWorld Corp is the world\'s largest multichannel video game retailer. The company reported the following amounts in its financial statements (in millions) 2013 2012 Net Sales Revenue$16,400 $15,900 Cost of Goods Sold9,240 8,840 Beginning Inventory2,550 1,850 2,950 2,550 Ending Inventory 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.) Tip: Remember to use costs in both the numerator (CGS) and denominator (average inventory) 2013 times per year days 2012 times per year days Inventory Turnover Ratio Days to Sell

Solution

Inventory Turnover Ratio=Cost of goods sold/Average Inventory

Days to sell=number of days/inventory turnover ratio

2013 2012

Cost of goods sold $9240 $8840

Opening inventory $2550 $1850

Closing Inventory $2950 $2550

Average Inventory(op.+cl)/2 $2750{(2550+2950)/2} $2200{(1850+2500)/2}

Inventory Turnover Ratio 3.36times(9240/2750) 4.02times(8840/2200)

Days to sell 109days(365/3.36) 91days(365/4.02)