You are provided with the following information about the bookstore at your university:
Required:
a. Calculate the inventory turnover ratio for the year ended June 30, 2014.
b. What is the average length of time that it took to sell its inventory in 2014?
c. Is the inventory turnover ratio satisfactory? What would you need to know to fully answer this question?
Definitions:
Gold
A precious metal with a yellow color, used in jewelry, electronics, and as an investment commodity.
Silver
A precious metal with high electrical conductivity and thermal conductivity, widely used in jewelry, currency, and various industrial applications.
Ounces
A unit of weight in the avoirdupois system, equivalent to 1/16th of a pound or approximately 28.349 grams.
Cord
A unit of measure for wood, typically used for firewood or pulpwood, referring to a volume of 128 cubic feet.
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