A company reports the following: Cost of merchandise sold $1,861,500 Average merchandise inventory 365,000 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Assume a 365-day year. Round your answers to one decimal place. a. Inventory turnover b. Number of days' sales in inventory days

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company reports the following:
Cost of merchandise sold
$1,861,500
Average merchandise inventory
365,000
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Assume a 365-day year. Round your answers to one decimal place.
a. Inventory turnover
b. Number of days' sales in inventory
days
Transcribed Image Text:A company reports the following: Cost of merchandise sold $1,861,500 Average merchandise inventory 365,000 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Assume a 365-day year. Round your answers to one decimal place. a. Inventory turnover b. Number of days' sales in inventory days
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