FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Based on the following information compute (a) inventory turnover, (b) average daily cost of merchandise sold, and (c) days' sales in inventory for the current year. Use a 365-day year.

 

Item Prior Year Current Year
Cost of merchandise sold $172,900 $215,000
Inventory    18,000    12,000

 

If required, round your answers to two decimal places.

(a)  Inventory turnover   times
(b)  Average daily cost of merchandise sold $  
(c)  Days' sales in inventory   days

(d)  If an inventory turnover of 12 is average for the industry, how is this company doing?
 

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