The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $788,400 $827,800 Beginning inventories 57,564 39,692 Cost of goods sold 394,200 459,900 Ending inventories 52,164 57,564 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory fill in the blank 3 days fill in the blank 4 days b. The inventory position of the business has improveddeteriorated . The inventory turnover has increaseddecreased , while the number of days' sales in inventory has increaseddecreased
The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $788,400 $827,800 Beginning inventories 57,564 39,692 Cost of goods sold 394,200 459,900 Ending inventories 52,164 57,564 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory fill in the blank 3 days fill in the blank 4 days b. The inventory position of the business has improveddeteriorated . The inventory turnover has increaseddecreased , while the number of days' sales in inventory has increaseddecreased
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data were extracted from the income statement of Keever Inc.:
| Current Year | Previous Year | |||
| Sales | $788,400 | $827,800 | ||
| Beginning inventories | 57,564 | 39,692 | ||
| Cost of goods sold | 394,200 | 459,900 | ||
| Ending inventories | 52,164 | 57,564 |
a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year.
| Current Year | Previous Year | |||
| 1. Inventory turnover | fill in the blank 1 | fill in the blank 2 | ||
| 2. Number of days' sales in inventory | fill in the blank 3 | days | fill in the blank 4 | days |
b. The inventory position of the business has
improveddeteriorated
. The inventory turnover has
increaseddecreased
, while the number of days' sales in inventory has
increaseddecreased
.
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