FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Inventory Analysis
A company reports the following:
| Cost of goods sold | $800,445 |
| Average inventory | 94,170 |
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
| a. Inventory turnover | fill in the blank 1 |
| b. Number of days' sales in inventory | fill in the blank 2 days |
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- Question Content Area Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365 days a year. Sales on account during year $575,757 Cost of merchandise sold during year 193,428 Accounts receivable, beginning of year 43,481 Accounts receivable, end of year 51,054 Merchandise inventory, beginning of year 32,544 Merchandise inventory, end of year 43,018 Round your intermediate calculations to the nearest dollar. When required, round your answer to the whole number.arrow_forwardCalculating inventory turnover A7X corporation has ending inventory of $625,817, the cost of goods sold for the year just ended was $9,758,345. What is the inventory turnover? The days sales in inventory? How long, on average, did a unit of inventory sit on the shelf before it was sold?arrow_forwardInventory Turnover and Days' Sales in Inventory Herberger & Company disclosed the following information in its recent annual report: Year 1 $20,000,000 2,000,000 4,000,000 Year 2 Cost of goods sold $24,000,000 Beginning inventory 4,000,000 Ending inventory 5,000,000 Calculate the company's inventory turnover and days' sales in inventory for both years. Round answers to two decimal places. Use rounded answers for subsequent calculations. Year 1 Inventory turnover Days' sales in inventory X 0 x Year 2 0 x 0 xarrow_forward
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