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SCC Company reported the following for the current year:   Net sales $ 48,000 Cost of goods sold 40,000 Beginning balance in inventory 2,000 Ending balance in inventory 8,000 Compute (a) inventory turnover and (b) days’ sales in inventory.  Compute the inventory turnover.         Inventory Turnover Numerator: / Denominator: = Inventory Turnover   /   = Inventory turnover   /   = 0 times Compute the days’ sales in inventory.         Days’ Sales In Inventory Numerator: / Denominator: × Days = Days’ Sales In Inventory   /   ×   = Days’ sales in inventory   /   ×   = 0 days

SCC Company reported the following for the current year:   Net sales $ 48,000 Cost of goods sold 40,000 Beginning balance in inventory 2,000 Ending balance in inventory 8,000 Compute (a) inventory turnover and (b) days’ sales in inventory.  Compute the inventory turnover.         Inventory Turnover Numerator: / Denominator: = Inventory Turnover   /   = Inventory turnover   /   = 0 times Compute the days’ sales in inventory.         Days’ Sales In Inventory Numerator: / Denominator: × Days = Days’ Sales In Inventory   /   ×   = Days’ sales in inventory   /   ×   = 0 days

FINANCIAL ACCOUNTING
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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SCC Company reported the following for the current year:
 

Net sales $ 48,000
Cost of goods sold 40,000
Beginning balance in inventory 2,000
Ending balance in inventory 8,000


Compute (a) inventory turnover and (b) days’ sales in inventory. 

Compute the inventory turnover.

 
 
 
 
Inventory Turnover
Numerator: / Denominator: = Inventory Turnover
  /   = Inventory turnover
  /   = 0 times

Compute the days’ sales in inventory.

 
 
 
 
Days’ Sales In Inventory
Numerator: / Denominator: × Days = Days’ Sales In Inventory
  /   ×   = Days’ sales in inventory
  /   ×   = 0 days
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