Inventory turnover and number of days' sales in inventoryFinancial statement data for years ending December 31 for Tango Company follow:20Υ720Y6Cost of goods sold$3,861,700 $4,080,700Inventories:Beginning of year803,000766,500End of year876,000803,000Requireda. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place.20Υ720Y6Inventory turnoverb. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place.20Υ720Y6Number of days' sales in inventorydaysdaysc. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?

The inventory turnover ratio indicates the rate at which the goods are sold to the customer. It can…

Inventory turnover and number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Υ7 20Υ6 Cost of goods sold $3,861,700 $4,080,700 Inventories: Beginning of year 803,000 766,500 End of year 876,000 803,000 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Y7 20Y6 Inventory turnover b. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. 20Υ7 20Y6 Number of days' sales in inventory days days c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?

Inventory turnover and number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Υ7 20Υ6 Cost of goods sold $3,861,700 $4,080,700 Inventories: Beginning of year 803,000 766,500 End of year 876,000 803,000 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Y7 20Y6 Inventory turnover b. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. 20Υ7 20Y6 Number of days' sales in inventory days days c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?

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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