Smithson Electrical Fixtures Reported the Following Income Statement for the Year

question 117

Essay

Smithson Electrical Fixtures reported the following income statement for the year ended December 31,2019.
$\begin{array}{c}\text { Smithson Electrical Fixtures}\\\text { Income Statement }\\\text { Year Ended December 31, 2019}\\\begin{array}{|l|r|r|}\hline\text { Sales Revenue } & & \$ 258,000 \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Beginning Merchandise Inventory } & \$ 43,500 & \\\hline \text { Net Cost of Purchases } & \underline{145,000} & \\\hline \text { Cost of Goods Available for Sale } & 188,500 &\\\hline \begin{array}{l}\text { Less: Ending Mercha } \\ \text { Inventory }\end{array} & 38,000 & \\\hline \text { Cost of Goods Sold: } & & 150,500 \\\hline \text { Gross Profit } & & 107,500 \\\hline \text { Operating Expenses } & & 87,200 \\\hline \text { Net Income } & & \$20,300\\\hline\end{array}\end{array}$
Compute inventory turnover rate for the year.(Round to two decimal places.)
Compute days' sales in inventory for the year.(Round to two decimal places.)

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Definitions:

Stringed Instruments

Musical instruments that produce sound through the vibration of strings, such as violins, guitars, and cellos.

Percussion Instruments

Musical instruments that produce sound primarily by being struck, shaken, or scraped, such as drums, cymbals, and maracas.

Percussion Instruments

Musical instruments that produce sound by being struck, shaken, or scraped, such as drums or cymbals.

Stringed Instruments

Musical instruments that produce sound by vibrating strings, played either by plucking, striking, or using a bow.