The following data were extracted from the income statement of Martin Solutions, Inc.: Year 2 Year 1 Sales $1,139,600 $1,192,320 Beginning inventory 80,000 64,000 Cost of goods sold 500,800 606,000 Ending inventory 72,000 80,000 Required: Assume a 365-day year. Determine for each year: a. Inventory turnover. Round your answers to one decimal place. Year 2 fill in the blank 1 Year 1 fill in the blank 2 b. Number of days' sales in inventory. Round your final answer to one decimal place. Year 2 fill in the blank 3 days Year 1 fill in the blank 4 days
The following data were extracted from the income statement of Martin Solutions, Inc.: Year 2 Year 1 Sales $1,139,600 $1,192,320 Beginning inventory 80,000 64,000 Cost of goods sold 500,800 606,000 Ending inventory 72,000 80,000 Required: Assume a 365-day year. Determine for each year: a. Inventory turnover. Round your answers to one decimal place. Year 2 fill in the blank 1 Year 1 fill in the blank 2 b. Number of days' sales in inventory. Round your final answer to one decimal place. Year 2 fill in the blank 3 days Year 1 fill in the blank 4 days
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 Martin Solutions, Inc.:
| Year 2 | Year 1 | |
| Sales | $1,139,600 | $1,192,320 |
| Beginning inventory | 80,000 | 64,000 |
| Cost of goods sold | 500,800 | 606,000 |
| Ending inventory | 72,000 | 80,000 |
Required:
Assume a 365-day year.
Determine for each year:
a. Inventory turnover. Round your answers to one decimal place.
| Year 2 | fill in the blank 1 |
| Year 1 | fill in the blank 2 |
b. Number of days' sales in inventory. Round your final answer to one decimal place.
| Year 2 | fill in the blank 3 days |
| Year 1 | fill in the blank 4 days |
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