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es Murphey Wholesalers, Incorporated operated over 900 stores as of September 1, 2019. The following data were taken from the company's annual report. All dollar amounts are in millions. Net sales Cost of goods sold Net income Merchandise inventory Fiscal Years Ending September 1, 2019 $183,108 159,291 11,659 11,615 a Inventory turnover b Average days to sell inventory cMurphey's inventory management got Required a. Compute Murphey's inventory turnover ratio for 2019 and 2018. (Round your answers to 1 decimal place.) b. Compute Murphey's average days to sell inventory for 2019 and 2018. (Assume 365 days in a year. Round your answers to the nearest whole number.) c. Based on your computations in Requirements a and b, did Murphey's inventory management get better or worse from 2018 to 2019? 2019 September 2, 2018 $169,976 131,212 times 27 days better 9,134 11,240 2018 times days

es Murphey Wholesalers, Incorporated operated over 900 stores as of September 1, 2019. The following data were taken from the company's annual report. All dollar amounts are in millions. Net sales Cost of goods sold Net income Merchandise inventory Fiscal Years Ending September 1, 2019 $183,108 159,291 11,659 11,615 a Inventory turnover b Average days to sell inventory cMurphey's inventory management got Required a. Compute Murphey's inventory turnover ratio for 2019 and 2018. (Round your answers to 1 decimal place.) b. Compute Murphey's average days to sell inventory for 2019 and 2018. (Assume 365 days in a year. Round your answers to the nearest whole number.) c. Based on your computations in Requirements a and b, did Murphey's inventory management get better or worse from 2018 to 2019? 2019 September 2, 2018 $169,976 131,212 times 27 days better 9,134 11,240 2018 times days

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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es Murphey Wholesalers, Incorporated operated over 900 stores as of September 1, 2019. The following data were taken from the company's annual report. All dollar amounts are in millions. Net sales. Cost of goods sold Net income Merchandise inventory Fiscal Years Ending September 1, 2019 $183,108 159,291 11,659 11,615 a Inventory turnover b Average days to sell inventory cMurphey's inventory management got Required a. Compute Murphey's inventory turnover ratio for 2019 and 2018. (Round your answers to 1 decimal place.) b. Compute Murphey's average days to sell inventory for 2019 and 2018. (Assume 365 days in a year. Round your answers to the nearest whole number.) c. Based on your computations in Requirements a and b, did Murphey's inventory management get better or worse from 2018 to 2019? 2019 September 2, 2018 $169,976 131,212 9,134 11,240 times 27 days better 2018 times days
Transcribed Image Text:es Murphey Wholesalers, Incorporated operated over 900 stores as of September 1, 2019. The following data were taken from the company's annual report. All dollar amounts are in millions. Net sales. Cost of goods sold Net income Merchandise inventory Fiscal Years Ending September 1, 2019 $183,108 159,291 11,659 11,615 a Inventory turnover b Average days to sell inventory cMurphey's inventory management got Required a. Compute Murphey's inventory turnover ratio for 2019 and 2018. (Round your answers to 1 decimal place.) b. Compute Murphey's average days to sell inventory for 2019 and 2018. (Assume 365 days in a year. Round your answers to the nearest whole number.) c. Based on your computations in Requirements a and b, did Murphey's inventory management get better or worse from 2018 to 2019? 2019 September 2, 2018 $169,976 131,212 9,134 11,240 times 27 days better 2018 times days
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