Inventory Analysis The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year $18,500,000 $20,000,000 940,000 860,000 9,270,000 10,800,000 1,120,000 940,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Current Year Previous Year Sales Beginning inventories Cost of goods sold Ending inventories 1. Inventory turnover 2. Number of days' sales in inventory b. The inventory position of the business has faster than the inventory, resulting in a days . The inventory turnover has inventory position. days. , while the number of days' sales in inventory has The sales volume has
Inventory Analysis The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year $18,500,000 $20,000,000 940,000 860,000 9,270,000 10,800,000 1,120,000 940,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Current Year Previous Year Sales Beginning inventories Cost of goods sold Ending inventories 1. Inventory turnover 2. Number of days' sales in inventory b. The inventory position of the business has faster than the inventory, resulting in a days . The inventory turnover has inventory position. days. , while the number of days' sales in inventory has The sales volume has
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Inventory Analysis
The following data were extracted from the income statement of Keever Inc.:
Current Year
Previous Year
$18,500,000
$20,000,000
940,000
860,000
9,270,000
10,800,000
1,120,000
940,000
a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
Current Year
Previous Year
Sales
Beginning inventories
Cost of goods sold
Ending inventories
1. Inventory turnover
2. Number of days' sales in inventory
b. The inventory position of the business has
faster than the inventory, resulting in a
days
days
. The inventory turnover has
inventory position.
while the number of days' sales in inventory has
The sales volume has
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