Calculate the Inventory Turnover and Day Sales in Inventory ratios for Hayden Co. assuming the FIFO method. Discuss what the ratios demonstrate to you. Assume the industry average for Inventory Turnover is 3.4. UnitsNetOperatingExpenses174,000UnitTotalDatePurchasedCostCostSales3,3006,80001/Jan$4.7015,51034,00035,34064,890385,00001/Apr01/Jul$5.006,20010,300$5.7001/Oct$6.3001/Dec10,200$7.0071,400221,14036,800Beginning Inventory consists of5,500 units at$4.21 per unit.Ending inventory was counted and holds12,560 units

Inventory turnover ratio is calculated as cost of goods sold divided by average inventory.

Calculate the Inventory Turnover and Day Sales in Inventory ratios for Hayden Co. assuming the FIFO method. Discuss what the ratios demonstrate to you. Assume the industry average for Inventory Turnover is 3.4.

Calculate the Inventory Turnover and Day Sales in Inventory ratios for Hayden Co. assuming the FIFO method. Discuss what the ratios demonstrate to you. Assume the industry average for Inventory Turnover is 3.4.

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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