Financial statement data for years ending December 31 for Tango Company follow:20Υ720Υ6Cost of merchandise sold$3,864,000$4,001,500Inventories:Beginning of yearEnd of year770,000740,000770,000840,000a. Determine the inventory turnover for 20Y7 and 20Y6.b. Determine the days' sales in inventory for 20Y7 and 20Y6. Use 365 days and roundto one decimal place.c. Does the change in inventory turnover and the days' sales in inventory from 20Y6 to20Y7 indicate a favorable or an unfavorable trend?

(a)Determine the inventory turnover for 20Y7 and 20Y6.

Answered: Financial statement data for years…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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