Financial statement data for years ending December 31 for Tango Company follow: 20Y7 $3,878,490 Cost of goods sold Inventories: Beginning of year. End of year Required 803,000 883,300 20Y6 $4,257,360 2017 773,800 803,000 a. Determine the inventory turnover for 2017 and 20Y6. Round to one decimal place. 20Y6
Financial statement data for years ending December 31 for Tango Company follow: 20Y7 $3,878,490 Cost of goods sold Inventories: Beginning of year. End of year Required 803,000 883,300 20Y6 $4,257,360 2017 773,800 803,000 a. Determine the inventory turnover for 2017 and 20Y6. Round to one decimal place. 20Y6
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Inventory turnover and number of days' sales in inventory
Financial statement data for years ending December 31 for Tango Company follow:
20Y7
2016
$3,878,490 $4,257,360
Cost of goods sold
Inventories:
Beginning of year.
End of year
Required
803,000
883,300
773,800
803,000
a. Determine the inventory turnover for 2017 and 20Y6. Round to one decimal place.
20Y6
20Y7
Inventory turnover
b. Determine the number of days' sales in inventory for 2017 and 20Y6. Use 365 days and round to one decimal place.
20Y7
20Y6
Number of days' sales in inventory
days
days
c. Are the changes in inventory turnover and the number of days' sales in inventory from 2016 to 2017 favorable or unfavorable?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3eeb2206-9ee8-46b0-ad5b-d8867fe9ecf8%2Fcc664eb8-c0b6-47de-aec2-8faaf8aa21c8%2Fwxqysx9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Inventory turnover and number of days' sales in inventory
Financial statement data for years ending December 31 for Tango Company follow:
20Y7
2016
$3,878,490 $4,257,360
Cost of goods sold
Inventories:
Beginning of year.
End of year
Required
803,000
883,300
773,800
803,000
a. Determine the inventory turnover for 2017 and 20Y6. Round to one decimal place.
20Y6
20Y7
Inventory turnover
b. Determine the number of days' sales in inventory for 2017 and 20Y6. Use 365 days and round to one decimal place.
20Y7
20Y6
Number of days' sales in inventory
days
days
c. Are the changes in inventory turnover and the number of days' sales in inventory from 2016 to 2017 favorable or unfavorable?
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