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ProofSmart Inc.
ProofSmart Inc., a supplier of home insulation materials, was burned down in a recent fire. From the remains of what used to be the accounting ledger, the following information was recovered:
20062007Inventory$2,367,121$2,418,257Gross Margin42%45%Inventory Turns11[unreadable]
Prior to the fire, ProofSmart saw a sales growth of 48% in 2007, a record performance for the 18 year-old company. (NOTE: Gross margin is defined as 1-(COGS/Sales).)
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