Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,877,000. Dogwood had the following balances: January 1 December 31 Accounts receivable $725,000 $775,000 Inventories 450,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory. $ 2. Calculate the inventory turnover ratio. times
Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,877,000. Dogwood had the following balances: January 1 December 31 Accounts receivable $725,000 $775,000 Inventories 450,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory. $ 2. Calculate the inventory turnover ratio. times
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 46E
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Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days
Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,877,000. Dogwood had the following balances:
January 1 December 31
Accounts receivable $725,000 $775,000
Inventories 450,000 425,000
Required:
Note: Round answers to one decimal place. Assume 365 days per year.
1. Calculate the average inventory.
$
2. Calculate the inventory turnover ratio.
times
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