The following data are from the income statements of Haskin Company. Year 20172016Sales revenue $6,420,000$6,420,000Beginning inventory940,000860,000Purchases 4,340,0004,661,000Ending inventory1,020,000940,000Answer the following questions:Compute for each year (1) the inventory turnover and (2) the days in inventory?What conclusions concerning the management of the inventory can be drawn from these data?

Name: The following data are from the income statements of Haskin Company.
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Description: The following data are from the income statements of Haskin Company. Year 20172016Sales revenue $6,420,000$6,420,000Beginning inventory940,000860,000Purchases 4,340,0004,661,000Ending inventory1,020,000940,000Answer the following questions:Compute f

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following data are from the income statements of Haskin Company.

Year	2017	2016
Sales revenue	$6,420,000	$6,420,000
Beginning inventory	940,000	860,000
Purchases	4,340,000	4,661,000
Ending inventory	1,020,000	940,000

Answer the following questions:

Compute for each year (1) the inventory turnover and (2) the days in inventory?
What conclusions concerning the management of the inventory can be drawn from these data?

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