A company reports the following: Cost of goods sold $435,000 Average inventory 72,500 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover b. Number of days' sales in inventory days
A company reports the following: Cost of goods sold $435,000 Average inventory 72,500 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover b. Number of days' sales in inventory days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PE.17-05B - Inventory Analysis
A company reports the following:
Cost of goods sold $435,000
Average inventory 72,500
Determine (a) the inventory turnover and (b) the number of days' sales in inventory.
Round interim calculations to the nearest dollar and final answers to one decimal place.
Assume 365 days a year.
a. Inventory turnover
b. Number of days' sales in
inventory
days

Transcribed Image Text:The following data are taken from the financial statements of Sigmon Inc.
Accounts receivable, end of year
Sales on account
20Y2
$182,600
$197,000
1,043,900 1,001,560
20Y3
1. Accounts receivable turnover
For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of
days' sales in receivables. Round answers to one decimal place. Assume a 365-day year.
20Y2
2. Number of days' sales in receivables
20Y1
20Y3
$211,800
Days
Days
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