A company reports the following: Line Item Description Amount Cost of goods sold $696,000 Average inventory 58,000 Determine (a) the inventory turnover and (b) the days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Line Item Description Answer a. Inventory turnover b. Days' sales in inventory

A company reports the following: Line Item Description Amount Cost of goods sold $696,000 Average inventory 58,000 Determine (a) the inventory turnover and (b) the days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Line Item Description Answer a. Inventory turnover b. Days' sales in inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Line Item Description	Amount
Cost of goods sold	$696,000
Average inventory	58,000

Line Item Description	Answer
a. Inventory turnover
b. Days' sales in inventory

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