Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 52

Last year, Nikkola Company had net sales of $12,358,000 and cost of goods sold o: $7,847,500. Nikkola had the following balances:
Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days
Refer to the information for Nikkola Company on the previous page.
Required:
Note: Round answers to one decimal place.
1. Calculate the average inventory.
2. Calculate the inventory turnover ratio.
3. Calculate the inventory turnover in days.
4. Conceptual Connection: Based on these ratios, does Nikkola appear to be performing well or poorly