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SCC Company reported the following for the current year:   Net sales $ 48,000 Cost of goods sold 40,000 Beginning balance in inventory 2,000 Ending balance in inventory 8,000 Compute (a) inventory turnover and (b) days’ sales in inventory.  Compute the inventory turnover.         Inventory Turnover Numerator: / Denominator: = Inventory Turnover   /   = Inventory turnover   /   = 0 times Compute the days’ sales in inventory.         Days’ Sales In Inventory Numerator: / Denominator: × Days = Days’ Sales In Inventory   /   ×   = Days’ sales in inventory   /   ×   = 0 days

SCC Company reported the following for the current year:   Net sales $ 48,000 Cost of goods sold 40,000 Beginning balance in inventory 2,000 Ending balance in inventory 8,000 Compute (a) inventory turnover and (b) days’ sales in inventory.  Compute the inventory turnover.         Inventory Turnover Numerator: / Denominator: = Inventory Turnover   /   = Inventory turnover   /   = 0 times Compute the days’ sales in inventory.         Days’ Sales In Inventory Numerator: / Denominator: × Days = Days’ Sales In Inventory   /   ×   = Days’ sales in inventory   /   ×   = 0 days

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 8PEB: Financial statement data for years ending December 31 for Tango Company follow: a. Determine the...
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SCC Company reported the following for the current year:
 

Net sales $ 48,000
Cost of goods sold 40,000
Beginning balance in inventory 2,000
Ending balance in inventory 8,000


Compute (a) inventory turnover and (b) days’ sales in inventory. 

Compute the inventory turnover.

 
 
 
 
Inventory Turnover
Numerator: / Denominator: = Inventory Turnover
  /   = Inventory turnover
  /   = 0 times

Compute the days’ sales in inventory.

 
 
 
 
Days’ Sales In Inventory
Numerator: / Denominator: × Days = Days’ Sales In Inventory
  /   ×   = Days’ sales in inventory
  /   ×   = 0 days
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