1. BE 6-11- estimating gross profits
At May 31, Creole Company has net sales of $330,000 and cost of goods available for sale of $230,000. In excel, compute the estimated cost of the ending inventory, assuming the gross profit rate is 35%. Use the formula below.
Hint: Estimated gross profit is calculated as follows:
Gross profit rate X net sales

2. BE 6-12- estimating retail inventory
On June 30, Fabre Fabrics has the following data pertaining to the retail inventory method: Goods available for sale at cost are $35,000 & Goods available for sale at retail are $50,000; net sales are $40,000. In excel, compute the estimated cost of the ending inventory using the retail inventory formula below.

3. Estimating Inventories
Inventory turnover measures the number of times on average the inventory is sold during the period.
Cost of Goods Sold
Inventory Turnover =
Average Inventory (beginning + ending)/ how many #s you added up
Days in inventory measures the average number of days inventory is held.
Days in Year (365)
Days in Inventory =
Inventory Turnover
SO 6 Compute and interpret the inventory turnover ratio.