Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: 20Υ4 20Υ3 Cost of merchandise sold $1,594,320 $977,762 Inventories: Beginning of year 310,980 217,540 End of year 448,220 310,980 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Υ4 20Y3 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and f answers to one decimal place. Days' Sales in Inventory days 20Υ4 days 20Υ3 C. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Inventory Turnover and Days' Sales in Inventory
Financial statement data for years ending December 31 for Amsterdam Company follow:
20Y4
20Υ3
Cost of merchandise sold
$1,594,320
$977,762
Inventories:
Beginning of year
310,980
217,540
End of year
448,220
310,980
a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.
Inventory Turnover
20Y4
20Υ3
b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final
answers to one decimal place.
Days' Sales in Inventory
days
20Υ4
days
20Υ3
C. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an
unfavorable trend?
Favorable V
7:02 1
10/23/
8.
Transcribed Image Text:Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: 20Y4 20Υ3 Cost of merchandise sold $1,594,320 $977,762 Inventories: Beginning of year 310,980 217,540 End of year 448,220 310,980 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 20Υ3 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory days 20Υ4 days 20Υ3 C. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend? Favorable V 7:02 1 10/23/ 8.
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