Inventory Turnover and Days' Sales in InventoryFinancial statement data for years ending December 31 for Amsterdam Company follow:20Y420Y3Cost of merchandise sold$3.598,900$3,015,630Inventories:Beginning of year593,000589,600End of year648,000593.000a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.Inventory Turnover20Y420Y3b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place.Days' Sales in Inventory20Y4days20Y3daysc. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?

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Description: Inventory Turnover and Days' Sales in InventoryFinancial statement data for years ending December 31 for Amsterdam Company follow:20Y420Y3Cost of merchandise sold$3.598,900$3,015,630Inventories:Beginning of year593,000589,600End of year648,000593.00

Inventory turnover is calculated by dividing the cost of goods sold by the average inventory.

Business

Accounting

Financial statement data for years ending December 31 for Amsterdam Company follow: 20Y4 20Y3 Cost of merchandise sold $3,598,900 $3,015,630 Inventories: Beginning of year 593,000 589,600 End of year 648,000 593,000 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 20Υ3

Financial statement data for years ending December 31 for Amsterdam Company follow: 20Y4 20Y3 Cost of merchandise sold $3,598,900 $3,015,630 Inventories: Beginning of year 593,000 589,600 End of year 648,000 593,000 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 20Υ3

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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